The only way is down when it comes to Winchelsea lease terms. Winchelsea flats that have a lease term shorter than 80 years will drop in market price even faster, and the cost of extending your lease will increase.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle Winchelsea 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.
Two years ago Lucas, started to get close to the 80-year threshold with the lease on his basement flat in Winchelsea. In buying his home 18 years ago, the lease term was of no interest. As luck would have it, he realised he needed to take steps soon on a lease extension. Lucas was able to extend his lease just under the wire in August. Lucas and the landlord ultimately settled on a premium of £5,500 . If he had missed the deadline, the figure would have become more costly by a minimum £975.
Mr C Evans was assigned a lease of a garden apartment in Winchelsea in February 2008. We are asked if we could estimate the price could be for a 90 year lease extension. Comparable properties in Winchelsea with a long lease were valued around £205,000. The average ground rent payable was £50 collected yearly. The lease expired in 2105. Having 79 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus professional charges.
Last Summer we were contacted by Dr W Anderson , who acquired a studio apartment in Winchelsea in May 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Similar properties in Winchelsea with an extended lease were valued around £275,000. The mid-range ground rent payable was £65 collected quarterly. The lease finished in 2094. Considering the 68 years as a residual term we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including costs.