Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Winchcombe. Clearly, the term of lease remaining shortens as time goes by. This is often ignored and only raises itself as an issue when the residence has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Qualifying long lease owners in Winchcombe have the legal entitlement to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Do give careful attention before delaying your Winchcombe lease extension. Holding off that expense now only increases the price you will eventually incur for a lease extension
Leasehold premises in Winchcombe with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you enhanced control over the value of your Winchcombe leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted negotiations with the freeholder of her studio apartment in Winchcombe, Freya commenced the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The legal work completed in September 2007. The landlord’s charges were kept to an absolute minimum.
Last Summer we were contacted by Mr E Laurent , who moved into a garden flat in Winchcombe in October 1997. The dilemma was if we could estimate the premium could be to extend the lease by a further 90 years. Similar residencies in Winchcombe with a long lease were valued about £171,800. The mid-range amount of ground rent was £55 collected every twelve months. The lease finished on 17 October 2074. Considering the 50 years outstanding we estimated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 plus costs.
Last Winter we were contacted by Mr and Mrs. H Reed , who was assigned a lease of a one bedroom flat in Winchcombe in January 2006. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Comparable premises in Winchcombe with a long lease were worth £280,000. The average amount of ground rent was £45 billed monthly. The lease ended on 28 October 2094. Having 70 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.