As the length of the unexpired term of a Winchelsea residential lease diminished so does its value and therefore the value of your property. Where the lease has, in excess of one hundred years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease without delay. The majority of flat owners in Winchelsea will meet the qualifying criteria; however a conveyancer should be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
The lawyers 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 conveyancer we work with provide it.
Alexander owned a conversion flat in Winchelsea being marketed with a lease of fraction over fifty eight years unexpired. Alexander on an informal basis approached his freeholder a well known Manchester-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 new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Alexander to invoke his statutory right. Alexander obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
In 2012 we were e-mailed by Mr and Mrs. O Parker who, having bought a ground floor flat in Winchelsea in November 2012. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Comparative flats in Winchelsea with 100 year plus lease were in the region of £225,800. The average amount of ground rent was £60 billed yearly. The lease finished on 27 July 2085. Considering the 60 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 exclusive of expenses.
Mr and Mrs. A Thompson bought a ground floor flat in Winchelsea in August 2005. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Identical flats in Winchelsea with 100 year plus lease were valued around £210,000. The average amount of ground rent was £50 invoiced monthly. The lease expired on 10 September 2105. Having 80 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including fees.