Winchcombe leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Winchcombe tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Winchcombe you must check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | 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. |
The conveyancers that we work with procure Winchcombe 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.
Trailing protracted correspondence with the landlord of her one bedroom flat in Winchcombe, Georgia commenced the lease extension process just as her lease was nearing the critical 80-year deadline. The transaction completed in March 2014. The freeholder’s fees were restricted to approximately 600 GBP.
Mr and Mrs. A Reed was assigned a lease of a recently refurbished flat in Winchcombe in June 2011. The question was if we could estimate the premium would likely be to prolong the lease by an additional years. Similar homes in Winchcombe with a long lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease elapsed in 2104. Considering the 79 years left we approximated the premium to the landlord for the lease extension to be within £7,600 and £8,800 exclusive of costs.
Dr N Clark purchased a purpose-built flat in Winchcombe in October 2010. The question was if we could approximate the price could be to extend the lease by a further 90 years. Comparative properties in Winchcombe with an extended lease were valued around £275,000. The average ground rent payable was £65 collected monthly. The lease elapsed in 2093. Taking into account 68 years outstanding we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus fees.