For anyone whose Wincanton flat is held on a long lease, our message is clear – if nothing is done, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you enhanced control over the value of your Wincanton leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the freeholder of her leasehold flat in Wincanton, Chloe commenced the lease extension process just as her lease was nearing the all-important 80-year deadline. The lease extension was concluded in September 2007. The landlord’s charges were negotiated to slightly above 650 GBP.
In 2009 we were contacted by Mr and Mrs. W Brooks who, having took over the lease of a one bedroom flat in Wincanton in February 2000. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Identical premises in Wincanton with 100 year plus lease were worth £240,600. The mid-range amount of ground rent was £60 billed yearly. The lease terminated in 2087. Given that there were 62 years remaining we approximated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 plus costs.
In 2010 we were phoned by Mr and Mrs. I Williams who, having completed a one bedroom apartment in Wincanton in January 2004. The question was if we could approximate the price would likely be for a ninety year lease extension. Identical flats in Wincanton with an extended lease were in the region of £174,200. The mid-range ground rent payable was £55 billed every twelve months. The lease expired on 13 May 2076. Considering the 51 years remaining we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 plus legals.