The market value of a leasehold property in Windermere depends on how long the lease has remaining. If it is near to or less than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of buying. Ideally one should start the lease extension process when a lease still has 82 years remaining so that all matters can be addressed ahead of the 80 year mark. Current legislation entitles Windermere qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Santander |
The conveyancing solicitors 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 conveyancing solicitor we work with provide it.
Leo owned a conversion flat in Windermere being sold with a lease of a few days over 61 years outstanding. Leo informally approached his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Leo to exercise his statutory right. Leo procured expert advice and secured an acceptable resolution informally and readily saleable.
In 2009 we were e-mailed by Mr and Mrs. A Díaz who, having bought a basement flat in Windermere in February 1999. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical properties in Windermere with a long lease were valued around £174,200. The average amount of ground rent was £55 invoiced yearly. The lease lapsed in 2077. Given that there were 51 years unexpired we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus legals.
Last Christmas we were phoned by Dr Isaac Williams , who owned a basement flat in Windermere in March 2010. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative properties in Windermere with an extended lease were valued around £285,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease finished on 4 August 2097. Considering the 71 years remaining we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including costs.