The market value of a leasehold property in Woolwich is impacted by how many years the lease has remaining. If it is near to or fewer than eighty years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be concluded in advance of the eighty year threshold. Statute enables Woolwich qualifying lessees to acquire a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Woolwich,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Woolwich valuers.
Evan was the the leasehold proprietor of a studio apartment in Woolwich on the market with a lease of a little over 61 years outstanding. Evan on an informal basis spoke with his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Evan to invoke his statutory right. Evan procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Spring we were e-mailed by Mr I Cox , who took over the lease of a one bedroom apartment in Woolwich in November 1997. The question was if we could approximate the price could be to prolong the lease by a further 90 years. Comparative residencies in Woolwich with an extended lease were worth £275,000. The mid-range ground rent payable was £65 invoiced quarterly. The lease concluded in 2093. Given that there were 68 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including professional charges.
An example of a Lease Extension case for a Woolwich property 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 related to 1 flat. The unexpired residue of the current lease was 69.77 years.