Old Windsor leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Old Windsor enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Old Windsor you must investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Old Windsor with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 conveyancing solicitors that we work with handle 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 lawyer we work with provide it.
Leo owned a high value flat in Old Windsor on the market with a lease of fraction over 61 years remaining. Leo informally contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Leo to invoke his statutory right. Leo procured expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2011 we were phoned by Mr and Mrs. V Green who, having bought a first floor apartment in Old Windsor in February 2003. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Identical premises in Old Windsor with a long lease were worth £285,000. The mid-range amount of ground rent was £45 invoiced annually. The lease concluded on 1 September 2097. Taking into account 71 years unexpired we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.
Last Spring we were contacted by Mr and Mrs. K Khan , who owned a purpose-built flat in Old Windsor in November 2005. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Comparable premises in Old Windsor with 100 year plus lease were valued about £230,800. The average ground rent payable was £60 collected every twelve months. The lease ended in 2086. Considering the 60 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 exclusive of expenses.