With a domestic leasehold property in Winchcombe, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Residents in Winchcombe with a lease approaching 81 years remaining should seriously consider extending it without delay. Once the lease term has fewer than 80 years left, under the current statute the freeholder is entitled to calculate and charge a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Winchcombe,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Winchcombe valuers.
Evan owned a studio apartment in Winchcombe on the market with a lease of just over 59 years unexpired. Evan on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Evan to exercise his statutory right. Evan procured expert legal guidance and secured an acceptable resolution informally and sell the property.
Last month we were contacted by Dr S Carter , who took over the lease of a one bedroom apartment in Winchcombe in April 2007. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Similar premises in Winchcombe with an extended lease were valued about £200,000. The average amount of ground rent was £50 collected monthly. The lease terminated on 8 January 2103. Considering the 77 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.
Mr Owen Reed completed a recently refurbished flat in Winchcombe in April 2000. The question was if we could approximate the price would likely be to extend the lease by an additional years. Identical homes in Winchcombe with an extended lease were in the region of £260,200. The mid-range ground rent payable was £65 collected annually. The lease expired on 5 June 2092. Given that there were 66 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £16,200 and £18,600 exclusive of costs.