It’s a harsh truth that a Winchcombe residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Winchcombe property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Winchcombe will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the process.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| TSB | |
| Yorkshire Building Society |
Retaining our service gives you increased control over the value of your Winchcombe leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful correspondence with the freeholder of her studio apartment in Winchcombe, Chelsea commenced the lease extension process just as her lease was approaching the all-important eighty-year mark. The lease extension was finalised in January 2009. The landlord’s costs were kept to an absolute minimum.
In 2010 we were contacted by Mrs V Bell who, having purchased a first floor apartment in Winchcombe in November 1999. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Identical premises in Winchcombe with a long lease were valued about £240,600. The mid-range amount of ground rent was £60 collected every twelve months. The lease end date was in 2088. Given that there were 62 years remaining we approximated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 not including costs.
In 2010 we were called by Ms I Roux who, having purchased a basement flat in Winchcombe in July 2003. The question was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparable premises in Winchcombe with an extended lease were in the region of £174,200. The average amount of ground rent was £55 billed every twelve months. The lease concluded in 2077. Given that there were 51 years remaining we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of legals.