With a residential leasehold premises in Winchcombe, you effectively rent it for a certain period of time. Modern 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 may think about a lease extension 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 particularly when there are fewer than eighty years left. Leasehold owners in Winchcombe with a lease approaching 81 years left should seriously consider extending it as soon as possible. Once a lease has fewer than eighty years left, under the relevant legislation the freeholder is entitled to calculate and levy a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with handle 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 conveyancing solicitor we work with provide it.
After unsuccessful negotiations with the freeholder of her leasehold apartment in Winchcombe, Zoe commenced the lease extension process just as her lease was nearing the critical 80-year mark. The legal work was concluded in November 2013. The landlord’s fees were negotiated to about 600 pounds.
In 2012 we were e-mailed by Mr and Mrs. J Nelson who, having was assigned a lease of a studio flat in Winchcombe in August 2004. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative flats in Winchcombe with a long lease were valued around £210,000. The average ground rent payable was £50 collected quarterly. The lease terminated in 2106. Taking into account 80 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus professional charges.
Dr Caleb Watson owned a ground floor flat in Winchcombe in July 1998. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative properties in Winchcombe with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £45 billed quarterly. The lease termination date was on 22 June 2095. Taking into account 69 years unexpired we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.