The re-sale value of a leasehold property in Woolwich is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be finalised in advance of the eighty year threshold. Leasehold Reform legislation enables Woolwich qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Woolwich with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Halifax | |
| National Westminster Bank | |
| Skipton Building Society |
The lawyers that we work with handle Woolwich 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 conveyancing solicitor we work with provide it.
Cameron owned a high value apartment in Woolwich being marketed with a lease of a little over 72 years left. Cameron on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Cameron to exercise his statutory right. Cameron obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Dr L Ramírez purchased a purpose-built apartment in Woolwich in May 2003. We are asked if we could estimate the price would be to prolong the lease by ninety years. Comparative residencies in Woolwich with an extended lease were in the region of £198,800. The average ground rent payable was £55 collected yearly. The lease ran out in 2081. Having 55 years left we estimated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 not including professional charges.
An example of a Lease Extension case for a Woolwich residence is 46 Credon Road in January 2014. On 11 September 2013 Deputy District Judge Price sitting at the Bow County Court made a vesting order that the freeholder surrender his lease and be granted a new lease of the Premises on such terms as may be determined by the First Tier Tribunal (Property Chamber).The appropriate sum as concluded by the Tribunal was £7225 This case was in relation to 1 flat. The unexpired term was 69.77 years.