The market value of a leasehold property in Winchelsea is impacted by how many years the lease has remaining. If it is close to or less than 80 years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension prior to buying. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be concluded prior to the 80 year mark. Statute enables Winchelsea qualifying lessees to obtain a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Winchelsea with over 100 years unexpired 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge 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.
Last October Archie, started to get near to the 80-year mark with the lease on his studio flat in Winchelsea. Having bought his home 18 years ago, the unexpired term was of little relevance. Luckily, he recognised he would soon be paying an inflated amount for Extending the lease. Archie extended the lease just under the wire in May. Archie and the freeholder ultimately agreed on the final figure of £5,000 . If the lease had slid lower than eighty years, the price would have increased by a minimum £900.
Dr Melissa Murphy was assigned a lease of a recently refurbished apartment in Winchelsea in August 2000. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical properties in Winchelsea with an extended lease were worth £260,200. The mid-range ground rent payable was £65 invoiced every twelve months. The lease termination date was on 19 May 2092. Given that there were 66 years left we estimated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 not including expenses.
In 2013 we were phoned by Ms Catherine Davies who, having purchased a studio flat in Winchelsea in February 2005. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical residencies in Winchelsea with 100 year plus lease were valued about £198,800. The mid-range amount of ground rent was £55 collected annually. The lease terminated on 11 June 2081. Given that there were 55 years as a residual term we approximated the premium to the landlord for the lease extension to be between £33,300 and £38,400 plus fees.