Winchcombe leases on domestic deteriorating in value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Winchcombe will mostly qualify for a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In certain cases you may not qualify. There are also strict timetables and formalities to follow once the process has commenced so it’s wise to be guided by a lawyer during the process.
Leasehold properties in Winchcombe with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Winchcombe,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Winchcombe valuers.
In 2014 Adam, came dangerously close to the eighty-year mark with the lease on his leasehold flat in Winchcombe. In buying his property two decades ago, the length of the lease was of minimal bearing. Fortunately, he noticed he needed to take steps soon on a lease extension. Adam was able to extend his lease at the eleventh hour last September. Adam and the freeholder via the management company ultimately settled on an amount of £5,000 . If he not met the deadline, the figure would have escalated by at least £925.
Last Winter we were contacted by Dr Victoria Turner , who was assigned a lease of a basement flat in Winchcombe in June 1998. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar flats in Winchcombe with an extended lease were worth £300,000. The mid-range amount of ground rent was £50 billed annually. The lease expired on 5 March 2102. Given that there were 76 years left we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.
In 2013 we were called by Mr Edward Martin who, having moved into a one bedroom flat in Winchcombe in July 2011. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable flats in Winchcombe with an extended lease were valued around £257,800. The mid-range ground rent payable was £65 collected yearly. The lease expiry date was on 16 February 2091. Having 65 years left we approximated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 not including legals.