As the the remaining lease term of a Winchelsea domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, over 125 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Winchelsea will qualify for this right; however a conveyancing solicitor can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The lawyers 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 conveyancer we work with provide it.
Owen was the the leasehold proprietor of a studio apartment in Winchelsea being marketed with a lease of a few days over sixty years outstanding. Owen on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Owen to exercise his statutory right. Owen procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Dr V Roux took over the lease of a one bedroom apartment in Winchelsea in October 2002. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable properties in Winchelsea with a long lease were valued about £300,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease expired on 5 March 2101. Taking into account 75 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
Last Winter we were called by Mr and Mrs. O Wilson , who acquired a one bedroom apartment in Winchelsea in February 2005. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Identical flats in Winchelsea with an extended lease were worth £250,400. The average ground rent payable was £65 billed monthly. The lease concluded in 2090. Having 64 years left we estimated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 not including professional charges.