Unfortunately that a Winterbourne residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Winterbourne property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher premium will be payable. Most flat owners in Winterbourne will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold residencies in Winterbourne with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| National Westminster Bank | |
| Skipton Building Society |
Using our service will provide you better control over the value of your Winterbourne leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jason owned a conversion flat in Winterbourne on the market with a lease of just over fifty eight years unexpired. Jason on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Jason to invoke his statutory right. Jason obtained expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Mr E Harris owned a one bedroom apartment in Winterbourne in May 2005. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Similar residencies in Winterbourne with an extended lease were in the region of £295,000. The mid-range ground rent payable was £50 collected annually. The lease elapsed in 2101. Considering the 75 years unexpired we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.
Mr and Mrs. M Pérez completed a ground floor flat in Winterbourne in August 2006. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable residencies in Winterbourne with a long lease were in the region of £250,400. The average amount of ground rent was £65 invoiced yearly. The lease ran out on 8 August 2090. Having 64 years left we approximated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 not including fees.