It’s a harsh certainty that a Windmill Hill residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Windmill Hill property prices.Once your lease nears 85ish years, you should start considering a lease extension. If lease term slips under eighty years, you will end up paying 50% 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 leasehold owners in Windmill Hill will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm 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 has commenced and you will need to be guided by your lawyer for the duration of the formalities.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers 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 lawyer we work with provide it.
Two years ago Toby, came precariously near to the eighty-year threshold with the lease on his one bedroom flat in Windmill Hill. Having bought his flat two decades ago, the length of the lease was of no importance. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Toby extended the lease just under the wire in September. Toby and the freeholder via the managing agents subsequently settled on sum of £5,000 . If he not met the deadline, the sum would have gone up by at least £1,000.
Mr and Mrs. U Hernández owned a newly refurbished flat in Windmill Hill in October 1998. The question was if we could estimate the premium would likely be to prolong the lease by ninety years. Identical residencies in Windmill Hill with an extended lease were valued around £208,200. The average amount of ground rent was £65 invoiced annually. The lease elapsed in 2087. Having 61 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 exclusive of legals.
Last month we were called by Mr and Mrs. N Edwards , who owned a purpose-built apartment in Windmill Hill in September 2008. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable premises in Windmill Hill with an extended lease were valued around £260,000. The mid-range amount of ground rent was £50 collected quarterly. The lease concluded in 2098. Given that there were 72 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.