When it comes to long leasehold property in Winscombe, 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. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Residents in Winscombe with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once the lease term has less than 80 years outstanding, under the current Act the freeholder can calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Winscombe lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Kyle was the the leasehold owner of a 2 bedroom apartment in Winscombe on the market with a lease of a few days over sixty years unexpired. Kyle on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Kyle to exercise his statutory right. Kyle procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Last Winter we were e-mailed by Mrs A Rogers , who moved into a recently refurbished flat in Winscombe in July 1996. The question was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Similar properties in Winscombe with a long lease were worth £285,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease termination date was in 2097. Given that there were 71 years unexpired we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus expenses.
Last January we were phoned by Dr J Allen , who bought a purpose-built flat in Winscombe in August 1995. We are asked if we could estimate the premium would be for a 90 year lease extension. Similar properties in Winscombe with 100 year plus lease were valued about £230,800. The average ground rent payable was £60 collected monthly. The lease terminated in 2086. Taking into account 60 years unexpired we calculated the premium to the landlord to extend the lease to be between £24,700 and £28,600 plus legals.