Wincanton leases on residential properties are gradually losing value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Wincanton will mostly qualify for a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In certain situations you may not be entitled. There are prescribed timetables and formalities to follow once the process has started so it’s wise to be guided by a conveyancer during the process.
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| 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 |
Retaining our service will provide you better control over the value of your Wincanton leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Alexander was the the leasehold proprietor of a conversion flat in Wincanton being marketed with a lease of fraction over 59 years left. Alexander on an informal basis approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Alexander to exercise his statutory right. Alexander obtained expert advice and secured an acceptable resolution informally and sell the flat.
Ms Alicia Cox owned a recently refurbished apartment in Wincanton in September 1998. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparative properties in Wincanton with an extended lease were worth £171,800. The mid-range amount of ground rent was £55 invoiced yearly. The lease ran out on 11 June 2075. Having 50 years outstanding we calculated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 not including professional charges.
Mr and Mrs. H Phillips bought a one bedroom apartment in Wincanton in March 2006. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative flats in Wincanton with an extended lease were valued around £280,000. The mid-range amount of ground rent was £45 collected yearly. The lease expiry date was in 2095. Taking into account 70 years outstanding we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.