Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Windsor. Clearly, the length of lease left reduces as time goes by. This is often ignored and only becomes a problem when the residence has to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible long lease owners in Windsor have the right to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. You should give careful attention before delaying your Windsor lease extension. Putting off the cost now likely increases the price you will ultimately incur for a lease extension
Leasehold premises in Windsor with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 secure guidance from a conveyancer and valuer with experience in lease extensions.
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 dealing with Windsor lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful correspondence with the freeholder of her garden flat in Windsor, Alexandra commenced the lease extension process as the eighty year threshold was swiftly advancing. The lease extension was finalised in September 2009. The landlord’s charges were kept to an absolute minimum.
Dr M Sharif bought a ground floor apartment in Windsor in March 2004. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Similar premises in Windsor with a long lease were worth £250,000. The mid-range ground rent payable was £50 collected annually. The lease ended on 21 November 2096. Considering the 70 years remaining we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Mr and Mrs. I Young bought a newly refurbished flat in Windsor in July 1995. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Similar flats in Windsor with 100 year plus lease were valued about £246,800. The average ground rent payable was £60 invoiced quarterly. The lease expired on 19 June 2076. Having 50 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 exclusive of professional charges.