The value of Winchcombe leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the unexpired lease term is less than eighty years
Leasehold properties in Winchcombe with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value 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 maintenance charges warrant it.
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 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 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis 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. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Winchcombe,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Winchcombe valuers.
In the wake of 6 months of lengthy negotiations with the landlord of her studio apartment in Winchcombe, Kelsey initiated the lease extension process just as her lease was approaching the all-important eighty-year mark. The lease extension was concluded in March 2012. The landlord’s charges were kept to an absolute minimum.
Last Winter we were contacted by Mr and Mrs. K Dupont , who owned a basement flat in Winchcombe in January 2003. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparative homes in Winchcombe with 100 year plus lease were valued around £218,400. The mid-range amount of ground rent was £60 collected annually. The lease expiry date was in 2084. Considering the 59 years unexpired we estimated the premium to the landlord to extend the lease to be between £27,600 and £31,800 exclusive of professional charges.
Mr and Mrs. V Adams purchased a newly refurbished flat in Winchcombe in November 2001. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Similar homes in Winchcombe with a long lease were worth £205,000. The mid-range ground rent payable was £50 collected per annum. The lease expired in 2104. Having 79 years left we calculated the premium to the landlord to extend the lease to be within £7,600 and £8,800 plus legals.