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 anticipate problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be concluded in advance of the eighty year cut off point. Leasehold Reform legislation entitles Windsor qualifying lessees to an additional term of ninety years on top of the unexpired term, at a peppercorn rent (no ground rent). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | 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. |
| 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.
Last Christmas Kyle, started to get near to the 80-year threshold with the lease on his leasehold flat in Windsor. In buying his property two decades ago, the unexpired term was of no significance. Fortunately, he noticed he needed to take action soon on Extending the lease. Kyle was able to extend his lease just ahead of time last March. Kyle and the freeholder via the management company ultimately agreed on an amount of £6,000 . If he not met the deadline, the amount would have escalated by at least £1,100.
Mr Ibrahim Watson took over the lease of a one bedroom apartment in Windsor in August 2009. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Similar premises in Windsor with an extended lease were worth £203,200. The average amount of ground rent was £65 invoiced annually. The lease concluded on 7 April 2087. Considering the 61 years remaining we estimated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 not including fees.
In 2010 we were e-mailed by Dr B Alexander who, having owned a one bedroom flat in Windsor in March 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparative residencies in Windsor with an extended lease were in the region of £260,000. The average ground rent payable was £50 billed monthly. The lease lapsed in 2098. Considering the 72 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.