Unfortunately that a Old Windsor residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Old Windsor property market.Where your lease has approximately 90 years left, you should 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 below eighty years - otherwise a higher premium will be due. The majority of flat owners in Old Windsor will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the formalities.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Old Windsor leasehold, as your property will be more valuable and marketable in terms 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.
Two years ago Cameron, came seriously close to the 80-year mark with the lease on his basement apartment in Old Windsor. In buying his property two decades ago, the lease term was of minimal significance. Thankfully, he realised he would imminently be paying an inflated amount for a lease extension. Cameron arranged for a lease extension just under the wire last June. Cameron and the landlord who owned the flat above subsequently settled on an amount of £5,500 . If he had missed the deadline, the amount would have escalated by a minimum £1,000.
Last Summer we were called by Mr and Mrs. K Robinson , who took over the lease of a newly refurbished flat in Old Windsor in February 2012. The question was if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical properties in Old Windsor with a long lease were in the region of £300,000. The mid-range amount of ground rent was £50 collected yearly. The lease came to a finish in 2102. Taking into account 76 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
Ms Bethany Lefebvre purchased a recently refurbished flat in Old Windsor in November 1999. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable residencies in Old Windsor with a long lease were valued around £257,800. The mid-range amount of ground rent was £65 billed monthly. The lease terminated on 28 September 2091. Having 65 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 plus fees.