The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Windermere have the right to extend the lease for a further ninety years in accordance with statute. Do think carefully before delaying your Windermere lease extension. Postponing the costs now simply escalates the price you will eventually be required to pay to extend the lease.
Leasehold premises in Windermere with over one hundred 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| 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 |
The conveyancers 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.
Following unsuccessful correspondence with the landlord of her ground floor flat in Windermere, Poppy started the lease extension process just as the lease was coming close to the crucial 80-year mark. The lease extension completed in September 2012. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. M Bernard completed a ground floor apartment in Windermere in January 2000. The dilemma was if we could estimate the price could be to extend the lease by a further 90 years. Similar premises in Windermere with a long lease were worth £189,000. The average amount of ground rent was £55 collected monthly. The lease terminated on 24 August 2079. Considering the 53 years unexpired we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including fees.
Last Spring we were contacted by Mr U Ramírez , who purchased a ground floor apartment in Windermere in February 2002. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Identical premises in Windermere with an extended lease were valued about £290,000. The mid-range amount of ground rent was £45 collected annually. The lease terminated on 18 March 2099. Given that there were 73 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.