Winkleigh leases on residential deteriorating in value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Winkleigh will mostly qualify for a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some cases you may not qualify. There are also strict deadlines and steps to comply with once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Winkleigh with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Regardless of whether you are a tenant or a landlord in Winkleigh,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Winkleigh valuers.
Last year John, came perilously close to the eighty-year threshold with the lease on his first floor apartment in Winkleigh. Having bought his home two decades ago, the unexpired term was of minimal relevance. Thankfully, he recognised he would soon be paying an escalated premium for Extending the lease. John was able to extend his lease at the eleventh hour last May. John and the landlord in the end agreed on sum of £5,000 . If the lease had gone to less than eighty years, the amount would have escalated by at least £1,075.
Mr and Mrs. S François acquired a recently refurbished flat in Winkleigh in June 1995. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Identical flats in Winkleigh with 100 year plus lease were worth £193,400. The mid-range ground rent payable was £65 invoiced per annum. The lease concluded on 16 June 2084. Given that there were 59 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of costs.
Last Christmas we were called by Mr and Mrs. Y Brown , who moved into a studio apartment in Winkleigh in June 2003. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable residencies in Winkleigh with 100 year plus lease were valued around £255,000. The mid-range ground rent payable was £50 billed per annum. The lease ended in 2095. Given that there were 70 years as a residual term we approximated the premium to the landlord to extend the lease to be between £10,500 and £12,000 not including fees.