Chances are that where you own a flat in Winnersh you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Retaining our service gives you better control over the value of your Winnersh leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Caleb was the the leasehold proprietor of a studio apartment in Winnersh being sold with a lease of fraction over sixty years outstanding. Caleb on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Caleb to exercise his statutory right. Caleb procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Mr and Mrs. J Nguyen owned a one bedroom flat in Winnersh in March 2003. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Similar premises in Winnersh with a long lease were in the region of £181,600. The mid-range amount of ground rent was £55 invoiced annually. The lease terminated on 19 July 2077. Taking into account 52 years outstanding we approximated the premium to the landlord to extend the lease to be between £30,400 and £35,200 plus expenses.
Mr and Mrs. B Sharif purchased a first floor apartment in Winnersh in March 2008. We are asked if we could approximate the price could be for a 90 year extension to my lease. Identical premises in Winnersh with an extended lease were in the region of £285,000. The mid-range ground rent payable was £45 billed annually. The lease finished on 6 September 2097. Given that there were 72 years unexpired we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.