Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Old Windsor. Inevitably, the period of lease remaining reduces over time. This is often ignored and only becomes a problem when the residence has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Old Windsor have the legal entitlement to extend the lease for an additional ninety years under statute. You should give careful deliberation before delaying your Old Windsor lease extension. Holding off that expense now simply increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Old Windsor,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Old Windsor valuers.
Tommy owned a 2 bedroom apartment in Old Windsor being marketed with a lease of a few days over 61 years left. Tommy on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Tommy to exercise his statutory right. Tommy procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Autumn we were called by Mr and Mrs. J González , who purchased a one bedroom apartment in Old Windsor in September 1995. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Identical flats in Old Windsor with a long lease were valued about £290,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease termination date was in 2098. Having 73 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.
Last year we were contacted by Mr and Mrs. M Flores , who owned a purpose-built flat in Old Windsor in March 1998. The question was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical residencies in Old Windsor with a long lease were valued around £240,600. The mid-range ground rent payable was £60 invoiced annually. The lease lapsed on 28 September 2087. Taking into account 62 years as a residual term we estimated the premium to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of expenses.