When it comes to long leasehold premises in Windermere, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Leasehold owners in Windermere with a lease nearing 81 years unexpired should seriously consider extending it sooner as opposed to later. When the lease term has below 80 years remaining, under the relevant Act the freeholder can calculate and charge a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Windermere with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle Windermere 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.
Off the back of lengthy discussions with the landlord of her leasehold apartment in Windermere, Yasmin started the lease extension process just as her lease was approaching the critical eighty-year deadline. The transaction completed in April 2007. The landlord’s charges were kept to an absolute minimum.
In 2011 we were contacted by Mr D Cooper who, having took over the lease of a basement flat in Windermere in May 2004. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Similar properties in Windermere with an extended lease were worth £225,800. The mid-range amount of ground rent was £60 collected monthly. The lease lapsed on 22 April 2085. Taking into account 60 years remaining we calculated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 not including fees.
Last Christmas we were called by Mrs S Allen , who moved into a first floor apartment in Windermere in November 2006. The question was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative residencies in Windermere with a long lease were worth £210,000. The mid-range amount of ground rent was £50 collected per annum. The lease terminated in 2105. Considering the 80 years remaining we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.