With a residential leasehold premises in Winchcombe, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially once there are fewer than eighty years remaining. Leasehold owners in Winchcombe with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. When the lease term has below eighty years outstanding, under the relevant statute the landlord is entitled to calculate and levy a greater amount, assessed on a technical computation, known as “marriage value” which is due.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
|National Westminster Bank|| Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|Skipton Building Society|| 85 years from the date of completion of the mortgage|
For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary
|Royal Bank of Scotland||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|Virgin|| 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
|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 lawyers that we work with will always be happy 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.
Muhammad was the the leasehold proprietor of a high value apartment in Winchcombe on the market with a lease of a few days over fifty eight years remaining. Muhammad on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Muhammad to invoke his statutory right. Muhammad procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
Last Autumn we were phoned by Mrs Lucy Gunderson , who completed a recently refurbished flat in Winchcombe in June 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Similar flats in Winchcombe with 100 year plus lease were worth £290,000. The average ground rent payable was £45 collected quarterly. The lease ran out on 7 July 2093. Taking into account 72 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus professional charges.
Mr and Mrs. P Wright was assigned a lease of a one bedroom apartment in Winchcombe in September 2001. We are asked if we could approximate the price could be for a ninety year lease extension. Comparable residencies in Winchcombe with a long lease were valued around £233,200. The average amount of ground rent was £60 invoiced annually. The lease concluded on 23 April 2082. Having 61 years left we calculated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 plus legals.