Woburn leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Woburn residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Woburn you should see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Woburn with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| TSB | |
| Virgin |
The lawyers that we work with procure Woburn lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Jacob was the the leasehold proprietor of a 2 bedroom flat in Woburn on the market with a lease of a little over fifty eight years unexpired. Jacob informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jacob to exercise his statutory right. Jacob obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
In 2010 we were called by Mr and Mrs. A Morgan who, having moved into a ground floor flat in Woburn in August 2010. We are asked if we could estimate the price could be for a 90 year lease extension. Identical properties in Woburn with 100 year plus lease were in the region of £295,000. The average ground rent payable was £45 invoiced quarterly. The lease expiry date was in 2100. Given that there were 74 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
Last Winter we were contacted by Ms I Rodríguez , who purchased a one bedroom flat in Woburn in January 2011. The question was if we could estimate the premium would likely be for a 90 year lease extension. Identical premises in Woburn with 100 year plus lease were valued about £243,000. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease elapsed in 2089. Having 63 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 plus professional charges.