Unfortunately 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 loss of value being disguised by increases in the Winchcombe property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term drops under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Winchcombe will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold premises in Winchcombe with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| TSB | |
| Royal Bank of Scotland |
The lawyers that we work with handle 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 lawyer we work with provide it.
Following protracted negotiations with the landlord of her leasehold flat in Winchcombe, Isabelle initiated the lease extension process just as the lease was coming close to the all-important 80-year threshold. The transaction completed in November 2011. The landlord’s fees were kept to an absolute minimum.
In 2013 we were approached by Mr and Mrs. L Mitchell who, having completed a studio apartment in Winchcombe in March 2002. The question was if we could estimate the price would be to extend the lease by 90 years. Comparable homes in Winchcombe with an extended lease were in the region of £216,000. The mid-range amount of ground rent was £60 billed annually. The lease expired on 27 January 2084. Taking into account 58 years unexpired we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus professional charges.
Last Autumn we were phoned by Mr and Mrs. K Laurent , who completed a ground floor apartment in Winchcombe in August 1998. We are asked if we could estimate the price could be for a ninety year lease extension. Comparable properties in Winchcombe with a long lease were in the region of £200,000. The average ground rent payable was £50 collected quarterly. The lease concluded in 2104. Having 78 years unexpired we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.