There is no doubt about it a leasehold flat or house in Windermere is a wasting asset as a result of the shortening lease. Where the residual term has, over 99 years to run then this decrease may be of little impact however there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner as opposed to later. The majority of flat owners in Windermere will qualify for this right; however a lawyer should be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Windermere can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Windermere lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful discussions with the freeholder of her two bedroom flat in Windermere, Hollie initiated the lease extension process just as her lease was approaching the crucial eighty-year deadline. The lease extension was finalised in July 2014. The freeholder’s fees were kept to an absolute minimum.
In 2012 we were phoned by Mrs R Khan who, having purchased a purpose-built flat in Windermere in June 2008. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative properties in Windermere with 100 year plus lease were worth £250,400. The average amount of ground rent was £65 invoiced per annum. The lease finished on 26 May 2089. Taking into account 64 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 plus fees.
Last Winter we were approach by Ms H Peterson , who bought a purpose-built apartment in Windermere in April 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar homes in Windermere with a long lease were valued about £189,000. The mid-range amount of ground rent was £55 billed quarterly. The lease elapsed in 2078. Having 53 years left we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of costs.