Unfortunately that a Woolacombe residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Woolacombe property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Woolacombe will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the process.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
The conveyancers that we work with undertake Woolacombe 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 conveyancer we work with provide it.
After protracted correspondence with the landlord of her first floor apartment in Woolacombe, Shannon started the lease extension process as the 80 year mark was quickly approaching. The transaction completed in November 2008. The freeholder’s costs were kept to an absolute minimum.
Last year we were phoned by Mr and Mrs. Y Hernández , who owned a garden apartment in Woolacombe in March 2008. We are asked if we could approximate the price could be to prolong the lease by an additional years. Comparable properties in Woolacombe with 100 year plus lease were in the region of £225,800. The average amount of ground rent was £60 billed quarterly. The lease finished on 11 August 2086. Having 60 years unexpired we calculated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 plus expenses.
Mrs K Mitchell was assigned a lease of a garden flat in Woolacombe in August 2007. The dilemma was if we could estimate the price could be to extend the lease by 90 years. Similar properties in Woolacombe with an extended lease were in the region of £210,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease finished on 11 March 2106. Having 80 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.