Windsor leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Windsor enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Windsor you really ought to check if your lease has between seventy and ninety years left. There are good reasons why a Windsor leaseholder with a lease having around 80 years left should take steps to make sure that a lease extension is effected without delay
Leasehold properties in Windsor with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Yorkshire 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. |
The conveyancing solicitors that we work with handle Windsor 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.
Harry was the the leasehold proprietor of a studio apartment in Windsor being sold with a lease of a little over fifty eight years unexpired. Harry informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Harry to exercise his statutory right. Harry obtained expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
In 2010 we were phoned by Mrs E Lee who, having completed a recently refurbished flat in Windsor in January 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Comparative homes in Windsor with 100 year plus lease were valued about £200,800. The mid-range ground rent payable was £65 collected per annum. The lease lapsed on 5 June 2085. Having 60 years unexpired we estimated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of costs.
Last Christmas we were contacted by Mr Henry Girard , who purchased a basement apartment in Windsor in July 2010. We are asked if we could approximate the premium would be to extend the lease by an additional years. Similar homes in Windsor with a long lease were valued about £255,000. The mid-range ground rent payable was £50 billed every twelve months. The lease expiry date was on 3 January 2096. Having 71 years left we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.