Windsor leases on residential properties are gradually losing value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be due. Leasehold owners in Windsor will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not be entitled. There are prescribed timetables and steps to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold premises in Windsor with in excess of 100 years outstanding 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Windsor can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in this area.
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 Windsor 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 9 months of lengthy discussions with the landlord of her one bedroom flat in Windsor, Isobel commenced the lease extension process as the 80 year mark was rapidly nearing. The lease extension was finalised in September 2015. The freeholder’s costs were kept to an absolute minimum.
Last month we were contacted by Dr A Morgan , who bought a ground floor flat in Windsor in November 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by ninety years. Identical homes in Windsor with 100 year plus lease were in the region of £193,400. The mid-range ground rent payable was £65 collected yearly. The lease expiry date was on 2 November 2084. Having 59 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 not including fees.
Mr K Brooks bought a one bedroom apartment in Windsor in September 2003. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Comparative premises in Windsor with an extended lease were in the region of £250,000. The average ground rent payable was £50 billed per annum. The lease expired on 23 April 2095. Having 70 years left we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.