Main reasons to commence your Windsor lease extension

Main reasons to start your Windsor lease extension today:

A Windsor leasehold property depreciates with the years remaining on the lease.

There is no doubt about it a leasehold property in Windsor is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond 100 years to run then this decrease may be fractional however there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Windsor will qualify for this right; nevertheless a conveyancer will be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for decades to come.

Lending institutions may not loan monies with a short lease

The trend since 2008 has been for banks to tighten lending criteria generally - this has extended to the property over which the home loan is to be granted. This has resulted in the unexpired lease term required by lenders has increased. In the past lenders would grant a mortgage on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Windsor lease extensions?

Regardless of whether you are a tenant or a landlord in Windsor,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Windsor valuers.

Windsor Lease Extension Case Summaries:

Hugo, Windsor, Berkshire,

Hugo was the the leasehold owner of a conversion apartment in Windsor being sold with a lease of just over 72 years remaining. Hugo informally approached his freeholder being a well known Manchester-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 rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Hugo to invoke his statutory right. Hugo procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.

Windsor case:

Dr Ben Gray owned a purpose-built apartment in Windsor in March 2004. The question was if we could approximate the price would be to extend the lease by 90 years. Similar residencies in Windsor with a long lease were in the region of £245,000. The mid-range amount of ground rent was £45 invoiced annually. The lease came to a finish in 2094. Having 68 years left we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.

Windsor case:

Last April we were approach by Ms P Rose , who took over the lease of a garden flat in Windsor in June 1999. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Comparable homes in Windsor with an extended lease were valued about £285,000. The average ground rent payable was £55 invoiced per annum. The lease terminated on 19 August 2105. Given that there were 79 years unexpired we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including legals.