The only way is down when it comes to Windsor lease terms. Windsor leaseholds that have a lease term lower than eighty years will de-escalate in market price even faster, and the cost of extending your lease will go up.
Leasehold residencies in Windsor with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Windsor leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Tommy owned a high value apartment in Windsor on the market with a lease of a few days over 59 years left. Tommy informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Tommy to exercise his statutory right. Tommy procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
In 2014 we were called by Mrs R Thompson who, having acquired a purpose-built flat in Windsor in February 1996. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Similar flats in Windsor with an extended lease were worth £186,000. The mid-range amount of ground rent was £65 billed monthly. The lease lapsed in 2084. Having 58 years left we approximated the compensation to the freeholder to extend the lease to be within £24,700 and £28,600 plus professional charges.
In 2011 we were phoned by Mr Felix Bertrand who, having bought a one bedroom apartment in Windsor in October 1997. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparable homes in Windsor with 100 year plus lease were in the region of £250,000. The mid-range ground rent payable was £50 collected per annum. The lease expired on 3 April 2095. Taking into account 69 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.