Unfortunately that a Windermere residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Windermere property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be payable. Most leasehold owners in Windermere will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Halifax | |
| Santander | |
| The Mortgage Works |
Retaining our service will provide you enhanced control over the value of your Windermere leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Evan owned a conversion apartment in Windermere being marketed with a lease of a few days over fifty eight years unexpired. Evan informally spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Evan to exercise his statutory right. Evan obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.
Last year we were e-mailed by Dr Chantelle Jackson , who purchased a garden apartment in Windermere in April 2003. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparative residencies in Windermere with a long lease were worth £198,800. The average amount of ground rent was £55 invoiced annually. The lease terminated in 2081. Considering the 55 years remaining we estimated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of fees.
Last year we were approach by Dr R Sharif , who bought a ground floor apartment in Windermere in November 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Identical homes in Windermere with a long lease were worth £300,000. The average ground rent payable was £50 billed yearly. The lease end date was on 28 February 2101. Given that there were 75 years outstanding we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.