Unfortunately that a Wincanton residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Wincanton property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining dips below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Wincanton will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold residencies in Wincanton with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth 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 estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Wincanton leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Harvey, came critically near to the eighty-year mark with the lease on his studio flat in Wincanton. In buying his home two decades ago, the unexpired term was of minimal significance. by good luck, it dawned on him that he needed to take action soon on a lease extension. Harvey arranged for a lease extension at the eleventh hour in January. Harvey and the freeholder ultimately settled on a premium of £5,000 . If he not met the deadline, the premium would have become more exhorbitant by at least £1,075.
Last year we were approach by Mr Luke James , who bought a studio apartment in Wincanton in April 2007. The question was if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Comparative flats in Wincanton with an extended lease were worth £295,000. The mid-range ground rent payable was £45 billed every twelve months. The lease came to a finish on 3 October 2099. Considering the 74 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
In 2012 we were e-mailed by Ms E Brown who, having took over the lease of a one bedroom apartment in Wincanton in June 2002. The dilemma was if we could approximate the premium would likely be to extend the lease by ninety years. Comparable premises in Wincanton with a long lease were valued about £248,000. The average ground rent payable was £65 billed per annum. The lease expiry date was in 2088. Taking into account 63 years remaining we calculated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 not including legals.