There is no doubt about it a leasehold flat or house in Windsor is a wasting asset as a result of the shortening lease. Where the residual term has, in excess of 100 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Most flat owners in Windsor will qualify for this right; nevertheless a conveyancer will be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in Windsor with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Birmingham Midshires | 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. |
| 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. |
Engaging our service gives you increased control over the value of your Windsor leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Blake owned a 2 bedroom flat in Windsor being sold with a lease of a few days over sixty years outstanding. Blake informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Blake to invoke his statutory right. Blake procured expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
Ms P Collins acquired a purpose-built apartment in Windsor in January 2003. The question was if we could estimate the price could be to extend the lease by a further 90 years. Identical properties in Windsor with 100 year plus lease were valued around £227,800. The average ground rent payable was £45 collected annually. The lease terminated in 2091. Having 65 years outstanding we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.
Mr and Mrs. H Young was assigned a lease of a first floor flat in Windsor in October 2001. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Comparable residencies in Windsor with a long lease were in the region of £275,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease came to a finish in 2102. Given that there were 76 years unexpired we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.