Windermere leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Windermere tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Windermere you must see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Windermere,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Windermere valuers.
Last year Jackson, started to get near to the 80-year mark with the lease on his two bedroom apartment in Windermere. Having bought his flat two decades ago, the unexpired term was of little relevance. Thankfully, he became aware that he needed to take steps soon on a lease extension. Jackson arranged for a lease extension just ahead of time in January. Jackson and the landlord who owned the flat above ultimately settled on the final figure of £5,000 . If the lease had descended to less than 80 years, the sum would have become more costly by at least £900.
Mr and Mrs. A Laurent acquired a recently refurbished flat in Windermere in February 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Identical premises in Windermere with an extended lease were worth £240,600. The mid-range amount of ground rent was £60 collected quarterly. The lease ran out in 2088. Given that there were 62 years remaining we calculated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 plus legals.
In 2012 we were contacted by Dr Ibrahim Hill who, having completed a garden flat in Windermere in August 2002. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Comparative premises in Windermere with 100 year plus lease were worth £174,200. The average ground rent payable was £55 collected quarterly. The lease concluded on 9 February 2077. Taking into account 51 years left we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus professional charges.