It’s an underpublicised truth that a Winchelsea residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Winchelsea property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining dips below eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Winchelsea will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in Winchelsea with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
|Barclays plc||Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval.|
|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.|
|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.|
|National Westminster Bank||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of 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.
Following unsuccessful correspondence with the landlord of her first floor flat in Winchelsea, Ellen started the lease extension process as the 80 year mark was fast advancing. The legal work completed in April 2005. The landlord’s costs were kept to an absolute minimum.
In 2013 we were e-mailed by Dr Reuben Davis who, having owned a first floor flat in Winchelsea in September 2002. The question was if we could approximate the premium could be for a 90 year lease extension. Similar homes in Winchelsea with 100 year plus lease were valued around £181,600. The average ground rent payable was £55 invoiced quarterly. The lease ended on 9 June 2073. Having 52 years remaining we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of costs.
Last Winter we were contacted by Dr Michael Williams , who acquired a ground floor apartment in Winchelsea in July 2004. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparative residencies in Winchelsea with an extended lease were in the region of £285,000. The average amount of ground rent was £45 billed quarterly. The lease lapsed in 2093. Having 72 years unexpired we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including legals.