It’s an underpublicised truth that a Windlesham residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Windlesham property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining falls below 80 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. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Windlesham will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold residencies in Windlesham with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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 |
| 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. |
Regardless of whether you are a tenant or a landlord in Windlesham,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Windlesham valuers.
Daniel owned a studio apartment in Windlesham being sold with a lease of a little over 59 years outstanding. Daniel informally spoke with his landlord a well known London-based freehold company for a lease extension. The landlord was keen 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 doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Daniel to invoke his statutory right. Daniel procured expert advice and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Mr I Laurent owned a studio flat in Windlesham in June 2001. The dilemma was if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical residencies in Windlesham with an extended lease were worth £176,200. The mid-range ground rent payable was £65 collected every twelve months. The lease end date was on 16 April 2081. Considering the 56 years remaining we approximated the premium to the landlord for the lease extension to be between £29,500 and £34,000 exclusive of fees.
Last year we were approach by Dr Hugo Mercier , who moved into a purpose-built apartment in Windlesham in October 1995. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable premises in Windlesham with a long lease were worth £237,600. The average ground rent payable was £45 collected annually. The lease finished in 2092. Taking into account 67 years left we calculated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of fees.