The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Old Windsor can extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Old Windsor lease extension. Postponing that expense today simply escalates the amount you will ultimately have to pay to extend the lease.
Leasehold properties in Old Windsor with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value 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 maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage 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. |
| Yorkshire 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. |
The lawyers that we work with undertake Old Windsor lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
After protracted correspondence with the landlord of her first floor flat in Old Windsor, Louise commenced the lease extension process as the 80 year deadline was swiftly advancing. The transaction completed in June 2014. The freeholder’s costs were restricted to less than 450 GBP.
Mr and Mrs. R White completed a purpose-built apartment in Old Windsor in June 2000. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparable properties in Old Windsor with 100 year plus lease were worth £223,400. The average amount of ground rent was £60 invoiced quarterly. The lease termination date was in 2085. Considering the 59 years unexpired we estimated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 not including expenses.
In 2014 we were contacted by Mr and Mrs. A Roberts who, having acquired a one bedroom apartment in Old Windsor in June 2007. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparable properties in Old Windsor with a long lease were worth £205,000. The average amount of ground rent was £50 invoiced per annum. The lease expired on 6 February 2105. Given that there were 79 years remaining we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.