Woolacombe leases on domestic properties are gradually losing value. Where your lease has about 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Leasehold owners in Woolacombe will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In certain circumstances you may not be entitled. There are also strict timetables and formalities to comply with once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a freeholder in Woolacombe,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Woolacombe valuers.
In the wake of 6 months of lengthy discussions with the freeholder of her purpose-built apartment in Woolacombe, Yasmin started the lease extension process as the eighty year mark was quickly approaching. The transaction was concluded in March 2007. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were called by Mr V Petit who, having purchased a first floor flat in Woolacombe in January 2001. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Identical properties in Woolacombe with a long lease were worth £206,200. The average ground rent payable was £55 invoiced quarterly. The lease expiry date was in 2081. Taking into account 56 years left we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 plus fees.
In 2011 we were e-mailed by Mr and Mrs. V Petit who, having moved into a garden flat in Woolacombe in September 1999. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Identical properties in Woolacombe with a long lease were worth £300,000. The mid-range amount of ground rent was £50 collected yearly. The lease termination date was in 2101. Having 76 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.