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. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 conveyancer and surveyor with experience in lease extensions.
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 in-depth market knowledge dealing with Windermere lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of lengthy discussions with the landlord of her purpose-built flat in Windermere, Bethany commenced the lease extension process as the 80 year deadline was fast advancing. The transaction was concluded in February 2008. The freeholder’s fees were kept to an absolute minimum.
Ms Emma Brooks took over the lease of a studio flat in Windermere in March 2005. We are asked if we could estimate the price would be for a 90 year lease extension. Identical homes in Windermere with 100 year plus lease were in the region of £250,400. The mid-range ground rent payable was £65 invoiced yearly. The lease lapsed on 13 July 2089. Taking into account 64 years unexpired we approximated the premium to the landlord for the lease extension to be between £19,000 and £22,000 not including costs.
In 2011 we were contacted by Mr and Mrs. N Peterson who, having purchased a basement flat in Windermere in October 2012. The question was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparative premises in Windermere with 100 year plus lease were valued around £189,000. The mid-range amount of ground rent was £55 billed quarterly. The lease ran out in 2078. Given that there were 53 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus costs.