The re-sale value of a leasehold property in Windermere is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be finalised prior to the 80 year threshold. Statute enables Windermere qualifying lessees to obtain a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Windermere with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Engaging our service gives you increased 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 have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Harvey was the the leasehold proprietor of a 2 bedroom flat in Windermere on the market with a lease of just over 59 years unexpired. Harvey on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Harvey to invoke his statutory right. Harvey obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Dr Ollie Dupont owned a basement apartment in Windermere in November 2007. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Windermere with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease termination date was in 2097. Considering the 72 years outstanding we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus professional charges.
Mr Ollie Mason owned a one bedroom apartment in Windermere in February 2004. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Similar flats in Windermere with 100 year plus lease were in the region of £233,200. The mid-range ground rent payable was £60 collected quarterly. The lease finished on 6 January 2086. Considering the 61 years outstanding we approximated the premium to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of expenses.