Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Winchester. Inevitably, the length of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Winchester have the right to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Do give due attention before putting off your Winchester lease extension. Putting off the cost now likely increases the price you will ultimately have to pay for a lease extension
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Winchester can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in lease extensions.
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 procuring Winchester lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Luke was the the leasehold proprietor of a conversion apartment in Winchester on the market with a lease of a little over 61 years left. Luke informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Luke to exercise his statutory right. Luke procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
In 2009 we were approached by Mr and Mrs. R Davis who, having was assigned a lease of a recently refurbished flat in Winchester in September 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Similar flats in Winchester with a long lease were valued around £285,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease ran out in 2097. Given that there were 71 years outstanding we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.
Ms Naomi Cook owned a studio flat in Winchester in March 1997. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Identical homes in Winchester with 100 year plus lease were in the region of £225,800. The mid-range amount of ground rent was £60 invoiced annually. The lease ran out on 10 July 2086. Considering the 60 years unexpired we approximated the compensation to the landlord for the lease extension to be within £23,800 and £27,400 not including professional charges.