Windsor leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Windsor tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Windsor you must investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder 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.
During the course of the last few months Kian, started to get close to the 80-year mark with the lease on his basement apartment in Windsor. Having purchased his property twenty years ago, the lease term was of no concern. Luckily, he recognised he needed to take action soon on a lease extension. Kian was able to extend his lease at the eleventh hour last August. Kian and the freeholder subsequently settled on an amount of £5,500 . If the lease had slid below 80 years, the amount would have increased by at least £925.
Last Winter we were contacted by Mrs L Nelson , who completed a one bedroom apartment in Windsor in March 2005. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical residencies in Windsor with 100 year plus lease were worth £183,600. The average amount of ground rent was £65 collected monthly. The lease concluded in 2083. Having 57 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.
Last January we were approach by Mr and Mrs. O Girard , who purchased a first floor apartment in Windsor in April 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Identical homes in Windsor with 100 year plus lease were valued around £245,000. The average amount of ground rent was £45 invoiced yearly. The lease elapsed on 12 January 2094. Given that there were 68 years remaining we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.