Unfortunately that a Windermere residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Windermere property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining falls below eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Windermere will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Chelsea 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Windermere leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted negotiations with the landlord of her basement apartment in Windermere, Nicole initiated the lease extension process as the 80 year threshold was rapidly nearing. The legal work completed in May 2010. The landlord’s charges were negotiated to slightly above 600 pounds.
In 2013 we were called by Mrs Kirsty Hill who, having owned a first floor flat in Windermere in November 2009. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical premises in Windermere with an extended lease were valued around £205,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease ended on 6 April 2103. Considering the 78 years unexpired we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including professional charges.
Mrs S Bell bought a one bedroom flat in Windermere in July 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Windermere with 100 year plus lease were valued around £267,600. The mid-range ground rent payable was £65 invoiced per annum. The lease elapsed on 25 January 2092. Having 67 years unexpired we estimated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of legals.