The re-sale value of a leasehold property in Windsor is impacted by how many years the lease has remaining. If it is near to or fewer than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be addressed ahead of the eighty year threshold. Leasehold Reform legislation enables Windsor qualifying lessees to acquire a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Windsor with over 100 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Coventry Building Society | |
| National Westminster Bank | |
| Skipton Building Society | |
| The Mortgage Works |
The conveyancing solicitors that we work with undertake 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 conveyancer we work with provide it.
After lengthy negotiations with the freeholder of her studio apartment in Windsor, Rachel started the lease extension process as the eighty year mark was swiftly advancing. The transaction was concluded in February 2008. The landlord’s costs were restricted to approximately 650 pounds.
In 2010 we were approached by Mr and Mrs. I Díaz who, having moved into a purpose-built apartment in Windsor in February 1999. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparable homes in Windsor with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease ran out in 2102. Having 76 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.
In 2013 we were approached by Mr and Mrs. M Mitchell who, having acquired a newly refurbished flat in Windsor in September 2010. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Windsor with 100 year plus lease were valued about £176,200. The average ground rent payable was £65 collected quarterly. The lease terminated in 2082. Having 56 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 not including professional charges.