Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Winchelsea. Clearly, the period of lease left shortens as time goes by. This is often overlooked and only raises itself as an issue when the residence has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Eligible leaseholders in Winchelsea have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. You should give careful consideration before delaying your Winchelsea lease extension. Holding off that expense now simply increases the price you will eventually incur for a lease extension
Leasehold properties in Winchelsea with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| National Westminster Bank | |
| Skipton Building Society | |
| Virgin | |
| Yorkshire Building Society |
The conveyancers 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.
Last October Austin, came seriously close to the eighty-year mark with the lease on his basement flat in Winchelsea. In buying his home 19 years previously, the length of the lease was of no importance. by good luck, he realised he would imminently be paying way over the odds for Extending the lease. Austin was able to extend his lease just under the wire last April. Austin and the freeholder via the management company ultimately agreed on the final figure of £6,000 . If he not met the deadline, the sum would have become more exhorbitant by a minimum £1,075.
In 2011 we were called by Mrs Isabel Stewart who, having was assigned a lease of a studio apartment in Winchelsea in August 2009. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Similar premises in Winchelsea with 100 year plus lease were valued around £267,600. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease terminated in 2093. Considering the 67 years left we estimated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 plus costs.
Mr and Mrs. E Reed bought a purpose-built apartment in Winchelsea in October 2012. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Identical residencies in Winchelsea with a long lease were worth £206,200. The mid-range ground rent payable was £60 billed per annum. The lease expiry date was in 2082. Having 56 years unexpired we calculated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus professional charges.