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 fewer than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be addressed prior to the 80 year mark. Leasehold Reform legislation enables Woolwich qualifying lessees to obtain a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Halifax | |
| Skipton Building Society |
Regardless of whether you are a tenant or a freeholder in Woolwich,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Woolwich valuers.
Last year David, started to get close to the 80-year threshold with the lease on his first floor flat in Woolwich. Having bought his flat two decades ago, the lease term was of minimal concern. Fortunately, he recognised he needed to take steps soon on a lease extension. David extended the lease just ahead of time in August. David and the freeholder in the end settled on sum of £6,000 . If he had missed the deadline, the amount would have gone up by a minimum £1,075.
Last Winter we were phoned by Dr T González , who purchased a one bedroom apartment in Woolwich in April 1997. We are asked if we could approximate the price would be for a ninety year lease extension. Identical residencies in Woolwich with 100 year plus lease were in the region of £267,600. The average amount of ground rent was £65 billed yearly. The lease finished on 27 February 2093. Having 67 years unexpired we estimated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 plus professional charges.
An example of a Lease Extension matter before the tribunal 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 number of years remaining on the existing lease(s) was 69.77 years.