There is no doubt about it a leasehold flat or house in Winterbourne is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of one hundred years remaining then this decrease may be negligible however there will become a stage when a lease has fewer than 80 years left 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 consider extending without delay. The majority of flat owners in Winterbourne will qualify for this right; however a conveyancer should be able to confirm whether 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 under two years.
Leasehold properties in Winterbourne with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | |
| Leeds Building Society | |
| Santander | |
| The Mortgage Works | |
| Virgin |
Using our service will provide you increased control over the value of your Winterbourne leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Jonathan, started to get close to the 80-year mark with the lease on his garden apartment in Winterbourne. Having bought his home two decades ago, the unexpired term was of minimal relevance. Thankfully, it dawned on him that he would imminently be paying way over the odds for a lease extension. Jonathan was able to extend his lease at the eleventh hour last July. Jonathan and the freeholder subsequently agreed on a premium of £5,000 . If the lease had descended lower than 80 years, the figure would have gone up by at least £975.
In 2010 we were phoned by Mr John Walker who, having took over the lease of a one bedroom flat in Winterbourne in March 2009. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Identical flats in Winterbourne with a long lease were in the region of £205,000. The average amount of ground rent was £50 billed quarterly. The lease ran out on 25 October 2105. Considering the 79 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.
Mr L Ricardo was assigned a lease of a one bedroom apartment in Winterbourne in February 2011. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable homes in Winterbourne with 100 year plus lease were worth £275,000. The average ground rent payable was £65 invoiced every twelve months. The lease finished in 2094. Having 68 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.