The market value of a leasehold property in Winchelsea depends on how long the lease has remaining. If it is near to or less than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is ideal to start the lease extension process when a lease still has 82 years to run so that formalities can be addressed ahead of the eighty year cut off point. Statute enables Winchelsea qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies 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 upside in purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Winchelsea leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jasper was the the leasehold owner of a high value flat in Winchelsea being marketed with a lease of fraction over 61 years remaining. Jasper informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Jasper to exercise his statutory right. Jasper procured expert advice and was able to make an informed decision and deal with the matter and sell the property.
Dr W Simon acquired a one bedroom flat in Winchelsea in October 2004. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable properties in Winchelsea with an extended lease were worth £191,400. The average amount of ground rent was £55 collected every twelve months. The lease ran out on 12 August 2080. Given that there were 54 years outstanding we approximated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 plus costs.
In 2011 we were called by Ms Georgia Gómez who, having owned a purpose-built apartment in Winchelsea in January 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Comparable properties in Winchelsea with 100 year plus lease were valued about £295,000. The mid-range amount of ground rent was £45 collected yearly. The lease expired in 2100. Taking into account 74 years left we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.