When it comes to residential leasehold property in Windermere, you are actually purchasing a right to live in a property for a set 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 should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are fewer than eighty years remaining. Leasehold owners in Windermere with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has under eighty years remaining, under the current legislation the freeholder is entitled to calculate and charge a larger amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Windermere with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
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. |
Halifax | Minimum 70 years from the date of the mortgage. |
National Westminster Bank | Mortgage term plus 30 years. |
TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
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 conveyancer we work with provide it.
After protracted correspondence with the landlord of her ground floor apartment in Windermere, Francesca started the lease extension process as the 80 year mark was fast approaching. The lease extension was concluded in September 2010. The freeholder’s costs were negotiated to under 650 pounds.
Last month we were contacted by Dr D Khan , who bought a basement flat in Windermere in July 2008. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Comparative premises in Windermere with an extended lease were in the region of £243,000. The average amount of ground rent was £65 invoiced yearly. The lease ended on 7 November 2087. Considering the 63 years remaining we approximated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of fees.
In 2011 we were contacted by Mrs V Taylor who, having acquired a newly refurbished flat in Windermere in September 2002. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Comparative premises in Windermere with an extended lease were in the region of £181,600. The mid-range amount of ground rent was £55 collected quarterly. The lease lapsed in 2076. Having 52 years left we calculated the premium to the landlord for the lease extension to be between £30,400 and £35,200 plus expenses.