When it comes to long leasehold premises in Winchcombe, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially once there are fewer than 80 years remaining. Anyone in Winchcombe with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When the lease term has under 80 years left, under the current statute the landlord is entitled to calculate and demand a larger amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Winchcombe with in excess of one hundred years outstanding on the lease are sometimes 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 warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Retaining our service will provide you better control over the value of your Winchcombe leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Ollie, started to get close to the eighty-year threshold with the lease on his ground floor flat in Winchcombe. Having bought his flat 19 years previously, the unexpired term was of no interest. Fortunately, he became aware that he would soon be paying an escalated premium for Extending the lease. Ollie arranged for a lease extension at the eleventh hour last March. Ollie and the freeholder subsequently settled on the final figure of £6,000 . If he not met the deadline, the price would have become more exhorbitant by at least £1,125.
Dr Ben Khan owned a garden flat in Winchcombe in January 1999. The question was if we could approximate the price could be for a ninety year extension to my lease. Identical premises in Winchcombe with 100 year plus lease were in the region of £295,000. The average amount of ground rent was £45 collected monthly. The lease ran out in 2100. Given that there were 75 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.
In 2009 we were phoned by Mr and Mrs. E Petit who, having purchased a ground floor apartment in Winchcombe in March 2005. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparable residencies in Winchcombe with a long lease were in the region of £250,400. The average ground rent payable was £65 billed annually. The lease ended in 2089. Given that there were 64 years left we calculated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of costs.