The market value of a leasehold property in Windermere depends on how many years the lease has remaining. If it is near to or less than 80 years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is ideal to start the lease extension process when a lease still has 82 years remaining so that formalities can be addressed ahead of the eighty year threshold. Leasehold Reform legislation entitles Windermere qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Windermere with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service will provide you enhanced control over the value of your Windermere leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Logan owned a high value flat in Windermere being sold with a lease of fraction over 72 years remaining. Logan informally approached his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Logan to invoke his statutory right. Logan procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
In 2012 we were approached by Mr Stanley Gunderson who, having completed a one bedroom apartment in Windermere in May 1998. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Comparative properties in Windermere with a long lease were valued about £210,000. The average amount of ground rent was £50 billed yearly. The lease elapsed on 24 March 2105. Considering the 80 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.
In 2010 we were phoned by Mr and Mrs. V Martinez who, having owned a one bedroom flat in Windermere in March 1997. The dilemma was if we could estimate the premium would likely be to extend the lease by 90 years. Comparable residencies in Windermere with an extended lease were valued around £275,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease ran out in 2094. Given that there were 69 years left we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including expenses.