With a domestic leasehold premises in Windlesham, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are less than 80 years left. Anyone in Windlesham with a lease drawing near to 81 years remaining should seriously think of extending it without delay. Once a lease has below 80 years outstanding, under the current legislation the landlord can calculate and levy a greater premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Windlesham with over 100 years remaining on the lease are often 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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Windlesham can be a difficult process. We recommend you secure guidance from a lawyer 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 a wealth of experience dealing with Windlesham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of unsuccessful discussions with the landlord of her one bedroom apartment in Windlesham, Charlotte initiated the lease extension process just as her lease was nearing the critical 80-year threshold. The legal work was finalised in June 2007. The freeholder’s fees were kept to an absolute minimum.
Last Spring we were contacted by Mrs T Campbell , who moved into a one bedroom apartment in Windlesham in October 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Identical residencies in Windlesham with 100 year plus lease were in the region of £183,600. The average amount of ground rent was £65 billed every twelve months. The lease ended in 2083. Having 57 years as a residual term we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including costs.
Last Christmas we were approach by Mr Alex Stewart , who acquired a ground floor apartment in Windlesham in July 2005. The question was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparative properties in Windlesham with 100 year plus lease were worth £250,000. The average amount of ground rent was £50 invoiced monthly. The lease elapsed on 10 September 2094. Given that there were 68 years remaining we estimated the premium to the landlord for the lease extension to be between £10,500 and £12,000 not including fees.