Winchcombe leases on residential deteriorating in value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Winchcombe will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some cases you may not be entitled. There are prescribed deadlines and steps to comply with once the process has started so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Winchcombe with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Engaging our service will provide you enhanced control over the value of your Winchcombe leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Harvey, came very close to the eighty-year threshold with the lease on his two bedroom flat in Winchcombe. Having bought his property two decades ago, the unexpired term was of minimal bearing. Fortunately, he noticed he would imminently be paying an escalated premium for a lease extension. Harvey extended the lease just under the wire in September. Harvey and the landlord who owned the flat above eventually settled on sum of £5,500 . If he not met the deadline, the amount would have escalated by at least £850.
In 2009 we were approached by Dr Omar James who, having purchased a garden flat in Winchcombe in April 2002. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative flats in Winchcombe with an extended lease were worth £200,000. The average ground rent payable was £50 collected monthly. The lease ran out on 22 June 2104. Having 78 years as a residual term we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.
In 2010 we were phoned by Dr Bethan Lee who, having purchased a garden flat in Winchcombe in November 2006. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Comparative residencies in Winchcombe with a long lease were in the region of £267,600. The average ground rent payable was £65 invoiced every twelve months. The lease elapsed in 2093. Taking into account 67 years outstanding we approximated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of expenses.