The only way is down when it comes to Windmill Hill lease terms. Windmill Hill leaseholds that have a lease term shorter than 80 years will drop in market price at a rapid rate, and the cost to extend your lease will rise.
Leasehold residencies in Windmill Hill with over 100 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 upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle Windmill Hill lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Ollie was the the leasehold owner of a studio flat in Windmill Hill on the market with a lease of a little over 72 years left. Ollie informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Ollie to invoke his statutory right. Ollie procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Mrs Erin Flores purchased a studio apartment in Windmill Hill in November 2003. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Similar properties in Windmill Hill with an extended lease were valued around £285,000. The mid-range ground rent payable was £55 collected every twelve months. The lease ended in 2106. Given that there were 80 years unexpired we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus legals.
Last Winter we were phoned by Mrs P Pérez , who owned a one bedroom flat in Windmill Hill in November 2010. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative flats in Windmill Hill with 100 year plus lease were worth £200,800. The average ground rent payable was £65 collected annually. The lease termination date was on 8 March 2086. Having 60 years remaining we estimated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of legals.