When it comes to residential leasehold property in Windsor, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should 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 notably when there are fewer than 80 years remaining. Residents in Windsor with a lease nearing 81 years left should seriously think of extending it without delay. When a lease has less than eighty years outstanding, under the current legislation the freeholder is entitled to calculate and charge a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is generally considered that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
The conveyancers that we work with procure Windsor 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.
Joshua owned a 2 bedroom flat in Windsor being sold with a lease of just over sixty years remaining. Joshua on an informal basis contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Joshua to exercise his statutory right. Joshua procured expert advice and was able to make an informed decision and deal with the matter and sell the flat.
Last month we were approach by Mrs G Bennett , who owned a garden flat in Windsor in September 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Comparative flats in Windsor with 100 year plus lease were valued around £260,000. The mid-range ground rent payable was £50 collected monthly. The lease ended on 14 October 2099. Having 73 years remaining we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
Mr Milo Leroy purchased a one bedroom flat in Windsor in November 2011. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable homes in Windsor with 100 year plus lease were worth £264,000. The mid-range ground rent payable was £60 billed monthly. The lease elapsed on 10 July 2079. Having 53 years outstanding we approximated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 exclusive of fees.