Woolacombe leases on residential properties are gradually losing value. if your lease has about ninety years left, you should start thinking about a lease extension. If lease term is under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Woolacombe will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In some circumstances you may not qualify. There are also strict timetables and steps to comply with once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold premises in Woolacombe with in excess of 100 years remaining 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 buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Woolacombe can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Woolacombe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted negotiations with the landlord of her first floor flat in Woolacombe, Sarah initiated the lease extension process just as her lease was coming close to the crucial 80-year threshold. The transaction was concluded in October 2009. The landlord’s costs were kept to an absolute minimum.
Last Autumn we were e-mailed by Ms Alexandra Gunderson , who moved into a garden flat in Woolacombe in July 2006. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable homes in Woolacombe with 100 year plus lease were worth £295,000. The average amount of ground rent was £50 collected annually. The lease finished on 9 February 2099. Taking into account 75 years left we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of fees.
In 2009 we were e-mailed by Ms M Bernard who, having was assigned a lease of a recently refurbished flat in Woolacombe in June 2001. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable homes in Woolacombe with an extended lease were in the region of £250,400. The average ground rent payable was £65 collected annually. The lease terminated on 28 June 2088. Considering the 64 years left we approximated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of professional charges.