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Top reasons for Winchcombe lease extension


Main reasons to start your Winchcombe lease extension today:

Increase your lease and increase your Winchcombe property value

The re-sale value of a leasehold property in Winchcombe depends on how long the lease has remaining. If it is near to or fewer than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that all matters can be finalised prior to the 80 year threshold. Leasehold Reform legislation enables Winchcombe qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold residencies in Winchcombe with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.

Lenders will not issue a mortgage on a short lease

Many banks and building societies insist on a lengthy amount of time left on a leasehold residence before they will consider providing a mortgage on it. Regardless of whether you require a mortgage, you should be conscious that it is likely that someone wanting to acquire your property in the future might well do, so where they are unable to get a mortgage, then the value of the property could suffer. In the last decade the majority of mortgage lenders have increased the required minimum lease length that they are willing to lend on

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

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;
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
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.
Halifax Minimum 70 years from the date of the mortgage.
Leeds Building Society 85 years remaining from the start of the mortgage.

What makes us experts in Winchcombe lease extensions?

Irrespective of whether you are a tenant or a landlord in Winchcombe,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Winchcombe valuers.

Winchcombe Lease Extension Case Summaries:

Lucy, Winchcombe, Gloucestershire,

Off the back of lengthy correspondence with the freeholder of her leasehold flat in Winchcombe, Lucy initiated the lease extension process as the eighty year threshold was fast advancing. The lease extension was concluded in January 2014. The landlord’s costs were kept to an absolute minimum.

Winchcombe case:

In 2009 we were phoned by Dr Alexandra Nelson who, having moved into a basement apartment in Winchcombe in May 2007. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative premises in Winchcombe with 100 year plus lease were in the region of £290,000. The average ground rent payable was £45 invoiced yearly. The lease ended in 2097. Taking into account 73 years left we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.

Winchcombe case:

Dr Phoebe Simon completed a basement apartment in Winchcombe in May 1995. The dilemma was if we could approximate the price could be for a ninety year lease extension. Similar premises in Winchcombe with 100 year plus lease were in the region of £240,600. The average ground rent payable was £65 billed yearly. The lease ended in 2086. Considering the 62 years remaining we approximated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.