With a residential leasehold premises in Windmill Hill, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Anyone in Windmill Hill with a lease nearing 81 years left should seriously consider extending it without delay. Once a lease has fewer than eighty years outstanding, under the current statute the freeholder can calculate and charge a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Windmill Hill with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Windmill Hill leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Alex owned a 2 bedroom apartment in Windmill Hill on the market with a lease of a few days over fifty eight years outstanding. Alex informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Alex to exercise his statutory right. Alex obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Mr and Mrs. A Baker acquired a studio flat in Windmill Hill in February 2008. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative premises in Windmill Hill with a long lease were worth £166,400. The average amount of ground rent was £60 billed every twelve months. The lease terminated on 10 August 2079. Given that there were 54 years remaining we calculated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 plus legals.
Mr O Murphy acquired a one bedroom flat in Windmill Hill in June 2004. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable homes in Windmill Hill with an extended lease were valued around £227,800. The average ground rent payable was £45 collected annually. The lease terminated on 3 August 2090. Considering the 65 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including costs.