The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Winchelsea can extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Winchelsea lease extension. Shelving that expense now simply increases the price you will eventually be required to pay for a lease extension.
Leasehold properties in Winchelsea with in excess of one hundred 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Godiva Mortgages | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure 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.
Michael was the the leasehold proprietor of a high value apartment in Winchelsea being sold with a lease of a few days over sixty years unexpired. Michael informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Michael to exercise his statutory right. Michael procured expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.
In 2009 we were contacted by Ms Freya Thomas who, having acquired a one bedroom flat in Winchelsea in July 2004. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Similar homes in Winchelsea with a long lease were valued about £181,600. The mid-range amount of ground rent was £55 billed annually. The lease expired in 2077. Considering the 52 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of legals.
In 2014 we were phoned by Mr and Mrs. N Young who, having owned a studio apartment in Winchelsea in March 2012. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical properties in Winchelsea with a long lease were worth £285,000. The average ground rent payable was £45 invoiced monthly. The lease termination date was on 6 July 2097. Considering the 72 years unexpired we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus expenses.