Winchcombe leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Winchcombe enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Winchcombe you should check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Winchcombe lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Off the back of lengthy discussions with the landlord of her one bedroom apartment in Winchcombe, Louise initiated the lease extension process just as the lease was approaching the critical 80-year deadline. The legal work was concluded in April 2015. The freeholder’s costs were kept to an absolute minimum.
Last Autumn we were contacted by Dr G Campbell , who purchased a ground floor apartment in Winchcombe in August 2008. The question was if we could estimate the price would likely be to extend the lease by a further 90 years. Similar homes in Winchcombe with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £45 billed quarterly. The lease finished on 2 July 2099. Taking into account 73 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
Mr and Mrs. B Reed owned a one bedroom apartment in Winchcombe in February 2012. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical premises in Winchcombe with 100 year plus lease were worth £240,600. The mid-range amount of ground rent was £60 invoiced annually. The lease lapsed in 2088. Having 62 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of expenses.