The only way is down when it comes to Winchelsea lease terms. Winchelsea properties that have a lease term lower than eighty years will drop in market price at a rapid rate, and the cost to extend your lease will go up.
It is conventional wisdom that a property with more than 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 property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers 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 conveyancing solicitor we work with provide it.
Following lengthy correspondence with the landlord of her ground floor apartment in Winchelsea, Alice started the lease extension process as the 80 year deadline was swiftly approaching. The lease extension was finalised in April 2012. The freeholder’s costs were restricted to about 550 GBP.
In 2011 we were e-mailed by Mr and Mrs. P Watson who, having took over the lease of a studio apartment in Winchelsea in July 2004. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Identical properties in Winchelsea with an extended lease were valued around £275,000. The average ground rent payable was £45 collected monthly. The lease expired on 26 May 2095. Taking into account 69 years remaining we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus costs.
Last January we were called by Mrs R Turner , who acquired a studio apartment in Winchelsea in October 2004. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Comparative premises in Winchelsea with an extended lease were valued around £216,000. The average amount of ground rent was £60 billed every twelve months. The lease concluded in 2084. Considering the 58 years unexpired we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including expenses.