As the the remaining lease term of a Wincanton domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, more than one hundred years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Most flat owners in Wincanton will meet the qualifying criteria; however a lawyer will be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Wincanton with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Engaging 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 lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Adam, started to get close to the 80-year threshold with the lease on his ground floor apartment in Wincanton. Having bought his flat two decades ago, the length of the lease was of no interest. Thankfully, he became aware that he would imminently be paying way over the odds for a lease extension. Adam arranged for a lease extension just under the wire in May. Adam and the freeholder subsequently agreed on an amount of £5,000 . If he not met the deadline, the price would have increased by at least £875.
Mr and Mrs. H Moreau completed a one bedroom flat in Wincanton in September 1997. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Identical flats in Wincanton with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 billed per annum. The lease terminated in 2105. Having 79 years remaining we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including costs.
Last November we were called by Mrs Y Murphy , who purchased a recently refurbished apartment in Wincanton in May 1996. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparable flats in Wincanton with 100 year plus lease were valued around £275,000. The average ground rent payable was £65 billed monthly. The lease expiry date was in 2094. Taking into account 68 years unexpired we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.