Wincanton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Wincanton tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Wincanton you must see if your lease has between seventy and ninety years left. There are compelling reasons why a Wincanton flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Wincanton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last October Kai, came very near to the 80-year mark with the lease on his purpose- built apartment in Wincanton. In buying his flat 18 years previously, the unexpired term was of minimal relevance. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Kai was able to extend his lease just ahead of time last May. Kai and the freeholder via the management company eventually settled on sum of £5,000 . If he had missed the deadline, the amount would have escalated by at least £1,100.
In 2014 we were e-mailed by Dr B Kelly who, having moved into a garden apartment in Wincanton in October 2007. We are asked if we could approximate the premium would be for a 90 year lease extension. Identical flats in Wincanton with a long lease were in the region of £198,800. The average amount of ground rent was £55 invoiced quarterly. The lease lapsed on 11 October 2080. Considering the 55 years remaining we estimated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 plus fees.
In 2010 we were contacted by Mr and Mrs. K Miller who, having completed a one bedroom flat in Wincanton in January 2000. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Identical homes in Wincanton with 100 year plus lease were valued about £300,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ran out in 2100. Given that there were 75 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.