Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Windermere. Inevitably, the period of lease left reduces over time. This is often overlooked and only raises itself as an issue when the flat or house has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Windermere have the right to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. You should give due consideration before delaying your Windermere lease extension. Holding off the cost now simply increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Engaging our service gives you increased control over the value of your Windermere leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of unsuccessful correspondence with the landlord of her ground floor apartment in Windermere, Georgia started the lease extension process as the 80 year mark was swiftly nearing. The legal work was finalised in February 2015. The landlord’s charges were kept to an absolute minimum.
Mr A Miller owned a one bedroom flat in Windermere in May 1998. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Similar premises in Windermere with an extended lease were worth £300,000. The mid-range ground rent payable was £50 collected monthly. The lease came to a finish on 24 January 2100. Given that there were 75 years unexpired we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.
Last year we were e-mailed by Ms K Campbell , who completed a one bedroom apartment in Windermere in September 2003. We are asked if we could estimate the premium could be for a ninety year lease extension. Similar residencies in Windermere with 100 year plus lease were in the region of £250,400. The mid-range amount of ground rent was £65 billed yearly. The lease elapsed on 27 February 2089. Taking into account 64 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of costs.