When it comes to residential leasehold property in Windsor, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are less than 80 years remaining. Leasehold owners in Windsor with a lease nearing 81 years left should seriously consider extending it sooner than later. When a lease has fewer than 80 years outstanding, under the current statute the landlord can calculate and charge a greater amount, based on a technical computation, known as “marriage value” which is due.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to 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. |
| 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 | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 get guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Windsor lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Liam was the the leasehold owner of a 2 bedroom apartment in Windsor being marketed with a lease of a little over sixty years unexpired. Liam informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder 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 Liam to invoke his statutory right. Liam obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
In 2014 we were phoned by Dr Teddy Brown who, having owned a purpose-built flat in Windsor in June 2007. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparative premises in Windsor with an extended lease were valued around £200,800. The mid-range amount of ground rent was £65 billed quarterly. The lease finished in 2086. Taking into account 60 years remaining we estimated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 not including professional charges.
In 2014 we were approached by Mr and Mrs. S Bailey who, having took over the lease of a one bedroom apartment in Windsor in March 2007. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Comparable premises in Windsor with a long lease were valued around £255,000. The average ground rent payable was £50 invoiced per annum. The lease expiry date was in 2097. Given that there were 71 years unexpired we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.