As the length of the unexpired term of a Winterbourne domestic lease lessens so does its value and therefore the value of your property. Where the lease has, in excess of 99 years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner as opposed to later. The majority of flat owners in Winterbourne will qualify for this right; that being said a conveyancer can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Winterbourne with more than one hundred years left 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 property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Winterbourne leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Jamie, came perilously close to the eighty-year threshold with the lease on his first floor apartment in Winterbourne. In buying his flat twenty years ago, the lease term was of little bearing. Fortunately, he became aware that he would imminently be paying an inflated amount for Extending the lease. Jamie was able to extend his lease just ahead of time in March. Jamie and the freeholder subsequently settled on an amount of £6,000 . If the lease had gone below 80 years, the premium would have increased by a minimum £1,075.
Mr and Mrs. Y Moore acquired a studio apartment in Winterbourne in January 2003. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Identical premises in Winterbourne with an extended lease were valued about £216,000. The mid-range ground rent payable was £60 invoiced quarterly. The lease lapsed in 2084. Having 58 years remaining we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including legals.
Last month we were e-mailed by Mr and Mrs. S Khan , who took over the lease of a ground floor flat in Winterbourne in April 1996. The question was if we could estimate the premium could be for a ninety year lease extension. Identical flats in Winterbourne with 100 year plus lease were worth £200,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease concluded in 2104. Having 78 years as a residual term we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.