With a residential leasehold property in Windsor, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years left. Residents in Windsor with a lease nearing 81 years unexpired should seriously think of extending it sooner as opposed to later. When the lease term has fewer than 80 years left, under the current statute the landlord is entitled to calculate and demand a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Windsor with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Retaining our service gives you enhanced control over the value of your Windsor leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Noah owned a studio flat in Windsor being sold with a lease of a little over 72 years left. Noah on an informal basis spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Noah to exercise his statutory right. Noah obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2011 we were contacted by Ms B Gunderson who, having was assigned a lease of a basement flat in Windsor in July 2009. The dilemma was if we could approximate the price would likely be to extend the lease by a further 90 years. Similar flats in Windsor with a long lease were worth £176,200. The mid-range ground rent payable was £65 collected quarterly. The lease terminated in 2081. Having 56 years remaining we estimated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 exclusive of fees.
Last year we were e-mailed by Mr and Mrs. R Peterson , who took over the lease of a first floor apartment in Windsor in June 2004. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable premises in Windsor with 100 year plus lease were worth £237,600. The average ground rent payable was £45 collected annually. The lease concluded in 2092. Considering the 67 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 not including legals.