On the balance of probabilities where you own a flat in Winterbourne you actually own a long leasehold interest over your property
Leasehold properties in Winterbourne with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Winterbourne leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Autumn Oliver, came perilously near to the eighty-year mark with the lease on his leasehold apartment in Winterbourne. In buying his flat twenty years ago, the unexpired term was of little interest. by good luck, he realised he needed to take steps soon on a lease extension. Oliver arranged for a lease extension at the eleventh hour in August. Oliver and the landlord subsequently agreed on sum of £5,000 . If the lease had slid lower than 80 years, the price would have become more costly by a minimum £1,075.
In 2012 we were called by Mr and Mrs. T Campbell who, having purchased a garden apartment in Winterbourne in November 2010. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative homes in Winterbourne with an extended lease were in the region of £201,200. The mid-range ground rent payable was £55 invoiced per annum. The lease finished on 3 May 2081. Given that there were 56 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including expenses.
Dr Ellen Mitchell completed a purpose-built apartment in Winterbourne in March 2001. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparative homes in Winterbourne with a long lease were in the region of £300,000. The average amount of ground rent was £50 billed per annum. The lease lapsed on 4 February 2101. Given that there were 76 years left we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.