The closer a residential lease in Winchelsea gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, in excess of 125 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. The majority of flat owners in Winchelsea will qualify for this right; that being said a conveyancer can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Winchelsea with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
The conveyancing solicitors 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 lawyer we work with provide it.
Half a year ago Nathaniel, came perilously close to the 80-year threshold with the lease on his ground floor apartment in Winchelsea. In buying his property 18 years ago, the lease term was of minimal concern. Luckily, he noticed he needed to take steps soon on Extending the lease. Nathaniel arranged for a lease extension just in the nick of time in July. Nathaniel and the freeholder in the end settled on a premium of £6,000 . If he not met the deadline, the amount would have escalated by at least £875.
Mr and Mrs. S Taylor acquired a recently refurbished flat in Winchelsea in June 1997. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Comparable residencies in Winchelsea with an extended lease were worth £200,000. The average amount of ground rent was £50 invoiced quarterly. The lease came to a finish on 16 June 2103. Having 77 years remaining we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.
In 2012 we were e-mailed by Ms Bethan Cook who, having was assigned a lease of a ground floor flat in Winchelsea in February 1997. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar residencies in Winchelsea with 100 year plus lease were valued around £260,200. The average amount of ground rent was £65 billed quarterly. The lease elapsed on 27 August 2092. Having 66 years outstanding we estimated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 exclusive of costs.