Winchcombe leases on residential properties are gradually losing value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. If lease term is under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Winchcombe will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In certain cases you may not be entitled. There are prescribed timetables and procedures to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Winchcombe lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In recent months Harvey, came precariously near to the 80-year mark with the lease on his one bedroom flat in Winchcombe. In buying his home two decades ago, the unexpired term was of no relevance. Luckily, he became aware that he would imminently be paying an inflated amount for Extending the lease. Harvey arranged for a lease extension at the eleventh hour in July. Harvey and the landlord eventually agreed on the final figure of £5,500 . If the lease had dropped to less than 80 years, the sum would have increased by at least £1,000.
Last February we were called by Mr E Thompson , who completed a one bedroom apartment in Winchcombe in June 1997. The question was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar properties in Winchcombe with a long lease were worth £208,600. The average amount of ground rent was £60 billed annually. The lease elapsed on 8 May 2083. Given that there were 57 years outstanding we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including professional charges.
Dr Sarah Baker purchased a first floor apartment in Winchcombe in February 2009. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Winchcombe with a long lease were valued around £200,000. The mid-range amount of ground rent was £50 collected per annum. The lease end date was in 2103. Given that there were 77 years remaining we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including legals.