Old Windsor leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Old Windsor residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Old Windsor you should see if your lease has between seventy and 90 years remaining. There are good reasons why a Old Windsor leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is put in place without delay
Leasehold properties in Old Windsor with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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. |
The lawyers that we work with procure 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.
Samuel owned a studio apartment in Old Windsor on the market with a lease of just over 61 years left. Samuel informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Samuel to exercise his statutory right. Samuel obtained expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
In 2014 we were e-mailed by Dr Archie Vincent who, having owned a studio apartment in Old Windsor in June 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Comparative premises in Old Windsor with 100 year plus lease were valued around £191,400. The average amount of ground rent was £55 collected per annum. The lease finished in 2079. Considering the 54 years left we approximated the premium to the landlord to extend the lease to be within £34,200 and £39,600 not including expenses.
Mr and Mrs. T White moved into a first floor flat in Old Windsor in April 1996. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparable residencies in Old Windsor with a long lease were in the region of £295,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease lapsed in 2099. Having 74 years left we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus costs.