Why you should commence your Winchcombe lease extension
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<h3> Top reasons for lease extension now:
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/winchcombe">Winchcombe</a> property value </h4>
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Winchcombe residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a period of years.
<h4>An extended lease is almost the same value as a freehold</h4>
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Leasehold properties in Winchcombe with over 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 to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it. <h4>Lending institutions may not lend with a short lease</h4> Banks and Building Societies are less likely to grant a mortgage on a residential flat in Winchcombe with a short lease. Many lenders simply refuse to lend on leases with less than 75 years left.
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<th> Requirement
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<td>Barnsley Building Society</td>
<td> 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
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<td>Coventry Building Society</td>
<td> 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.
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<td>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
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<td>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
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What makes us experts in Winchcombe lease extensions?
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<p> Engaging our service gives you better control over the value of your Winchcombe leasehold, as your property will be more valuable and saleable in relation to the lease length should you want 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. <h4>
Winchcombe Lease Extension Example Cases:
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<h5> Lewis, Winchcombe, Gloucestershire</h5>
<p> Two years ago Lewis, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Winchcombe. Having purchased his home two decades ago, the unexpired term was of no interest. Fortunately, he realised he would imminently be paying an inflated amount for a lease extension. Lewis arranged for a lease extension just under the wire in May. Lewis and the freeholder ultimately agreed on an amount of £5,000 . If the lease had dropped lower than 80 years, the sum would have escalated by a minimum £1,050.
<h5>Winchcombe case:</h5>
<p> Mr and Mrs. S Nguyen completed a one bedroom flat in Winchcombe in June 2008. We are asked if we could estimate the price could be to prolong the lease by ninety years. Comparable residencies in Winchcombe with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £65 collected annually. The lease lapsed in 2094. Taking into account 68 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
<h5>Winchcombe case:</h5>
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In 2011 we were phoned by Ms Elizabeth Hall who, having bought a newly refurbished apartment in Winchcombe in September 2000. The question was if we could approximate the price would be for a 90 year lease extension. Comparable premises in Winchcombe with a long lease were valued around £208,600. The average amount of ground rent was £60 billed every twelve months. The lease elapsed in 2083. Taking into account 57 years unexpired we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including professional charges.
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