Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Winkleigh. Clearly, the period of lease left reduces as time goes by. This may slip by relatively unnoticed when the property has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Winkleigh have the legal entitlement to extend the lease for a further ninety years under statute. You should give due attention before putting off your Winkleigh lease extension. Putting off the cost now likely increases the price you will eventually incur for a lease extension
Leasehold premises in Winkleigh with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Regardless of whether you are a tenant or a landlord in Winkleigh,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Winkleigh valuers.
Felix owned a conversion apartment in Winkleigh on the market with a lease of a few days over 59 years remaining. Felix on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Felix to invoke his statutory right. Felix obtained expert advice and secured satisfactory resolution informally and sell the flat.
In 2009 we were called by Mr and Mrs. I Green who, having purchased a studio apartment in Winkleigh in October 2012. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Similar premises in Winkleigh with a long lease were valued around £265,000. The average ground rent payable was £50 billed every twelve months. The lease lapsed on 25 March 2099. Considering the 73 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.
In 2009 we were e-mailed by Mrs F Cox who, having bought a first floor apartment in Winkleigh in January 2011. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable flats in Winkleigh with a long lease were worth £264,000. The mid-range ground rent payable was £60 collected yearly. The lease ran out on 5 March 2079. Considering the 53 years left we approximated the premium to the landlord for the lease extension to be between £37,100 and £42,800 not including expenses.