It’s an underpublicised truth that a Winchelsea residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Winchelsea property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term drops under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Winchelsea will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Winchelsea can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Winchelsea lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Sebastian, started to get close to the 80-year mark with the lease on his studio apartment in Winchelsea. Having bought his home 19 years ago, the length of the lease was of little bearing. by good luck, he realised he would imminently be paying an escalated premium for a lease extension. Sebastian arranged for a lease extension just under the wire last July. Sebastian and the landlord who owned the flat above in the end settled on the final figure of £5,500 . If he failed to meet the deadline, the sum would have gone up by a minimum £1,150.
Last Summer we were approach by Mrs L Davis , who moved into a ground floor flat in Winchelsea in February 2004. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Identical homes in Winchelsea with an extended lease were worth £189,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease terminated in 2078. Considering the 53 years outstanding we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including expenses.
Dr Michael Gunderson completed a garden apartment in Winchelsea in June 2001. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable flats in Winchelsea with an extended lease were valued around £290,000. The average amount of ground rent was £45 collected annually. The lease elapsed in 2098. Given that there were 73 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.