Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Winchcombe. Clearly, the period of lease left shortens over time. This may slip by relatively unnoticed when the property has to be sold or refinanced. The shorter the lease the less it is worth and the more expensive it will be 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 Leasehold Reform legislation. Please give due deliberation before delaying your Winchcombe lease extension. Holding off the cost now likely increases the price you will eventually have to pay for a lease extension
Leasehold properties in Winchcombe with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Coventry Building Society | |
| Leeds Building Society | |
| Virgin | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in Winchcombe,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Winchcombe valuers.
Evan was the the leasehold proprietor of a high value flat in Winchcombe being sold with a lease of fraction over 59 years outstanding. Evan informally approached his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Evan to invoke his statutory right. Evan obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
Last August we were approach by Dr M Mitchell , who moved into a purpose-built apartment in Winchcombe in March 2000. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical properties in Winchcombe with a long lease were worth £191,400. The average ground rent payable was £55 billed per annum. The lease expiry date was on 9 November 2080. Considering the 54 years remaining we estimated the premium to the landlord for the lease extension to be within £34,200 and £39,600 not including legals.
Last Autumn we were called by Dr Evan Vincent , who completed a purpose-built flat in Winchcombe in June 2010. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Similar residencies in Winchcombe with an extended lease were valued about £295,000. The average amount of ground rent was £45 collected annually. The lease ended on 12 August 2100. Considering the 74 years outstanding we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.