The only way is down when it comes to Winchcombe lease terms. Winchcombe properties that have a lease term shorter than eighty years will de-escalate in value at a rapid rate, and the cost of extending your lease will go up.
Leasehold premises in Winchcombe with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Winchcombe leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of unsuccessful negotiations with the landlord of her studio flat in Winchcombe, Francesca started the lease extension process just as her lease was approaching the critical 80-year deadline. The transaction was concluded in October 2013. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were e-mailed by Mr Noah Williams who, having completed a one bedroom apartment in Winchcombe in April 2007. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical flats in Winchcombe with an extended lease were in the region of £285,000. The average ground rent payable was £45 billed yearly. The lease ran out in 2096. Given that there were 71 years remaining we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.
In 2009 we were approached by Mrs Isobel Brown who, having bought a newly refurbished apartment in Winchcombe in August 1999. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Comparative premises in Winchcombe with a long lease were valued about £225,800. The mid-range ground rent payable was £60 collected yearly. The lease came to a finish on 1 January 2085. Taking into account 60 years remaining we calculated the premium to the freeholder for the lease extension to be within £25,700 and £29,600 not including costs.