Windsor residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
Leasehold properties in Windsor with more than one hundred years left 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Windsor can be a difficult process. We recommend you secure 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 a wealth of experience dealing with Windsor lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Muhammad, started to get near to the eighty-year threshold with the lease on his leasehold flat in Windsor. In buying his home two decades ago, the length of the lease was of little importance. Luckily, it dawned on him that he would soon be paying way over the odds for a lease extension. Muhammad was able to extend his lease just under the wire last August. Muhammad and the freeholder via the management company subsequently agreed on the final figure of £5,500 . If the lease had slid below eighty years, the sum would have increased by a minimum £1,050.
Ms I Morgan was assigned a lease of a one bedroom flat in Windsor in July 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Windsor with a long lease were worth £260,000. The mid-range ground rent payable was £50 billed every twelve months. The lease lapsed in 2097. Considering the 72 years outstanding we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.
Mr and Mrs. M Leroy purchased a basement apartment in Windsor in January 2008. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable properties in Windsor with a long lease were valued around £256,600. The mid-range amount of ground rent was £60 collected yearly. The lease elapsed on 4 June 2077. Taking into account 52 years left we estimated the compensation to the landlord to extend the lease to be between £39,000 and £45,000 not including legals.