It’s a harsh truth that a Winchester residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Winchester property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term slips under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Winchester will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold residencies in Winchester with more than one hundred years outstanding on the lease are sometimes 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 purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Winchester leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Logan, came seriously near to the eighty-year mark with the lease on his purpose- built apartment in Winchester. In buying his home two decades ago, the unexpired term was of no bearing. by good luck, he noticed he would imminently be paying way over the odds for Extending the lease. Logan extended the lease just ahead of time last June. Logan and the freeholder in the end settled on a premium of £5,000 . If he not met the deadline, the sum would have increased by at least £1,125.
In 2012 we were called by Mrs Samantha Alexander who, having completed a basement apartment in Winchester in June 2010. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Similar properties in Winchester with a long lease were valued about £191,400. The mid-range ground rent payable was £55 billed quarterly. The lease termination date was on 7 February 2080. Taking into account 54 years unexpired we estimated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 exclusive of fees.
In 2013 we were phoned by Mr and Mrs. J Brown who, having was assigned a lease of a studio apartment in Winchester in February 2006. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Identical homes in Winchester with an extended lease were worth £295,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease end date was in 2100. Considering the 74 years outstanding we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of fees.