With a residential leasehold property in Winscombe, you effectively rent it for a certain period of time. 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 a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Residents in Winscombe with a lease drawing near to 81 years unexpired should seriously think of extending it sooner as opposed to later. Once a lease has under eighty years outstanding, under the current Act the freeholder is entitled to calculate and levy a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold premises in Winscombe with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you better control over the value of your Winscombe leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Arthur owned a conversion flat in Winscombe on the market with a lease of a little over 61 years outstanding. Arthur informally contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Arthur to invoke his statutory right. Arthur procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
Ms F Taylor was assigned a lease of a garden apartment in Winscombe in March 2008. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Similar properties in Winscombe with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 invoiced every twelve months. The lease ran out on 10 March 2101. Taking into account 76 years left we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.
Dr Niamh Laurent purchased a studio apartment in Winscombe in June 2004. We are asked if we could approximate the price would be to extend the lease by an additional years. Comparable flats in Winscombe with a long lease were worth £257,800. The mid-range ground rent payable was £65 invoiced monthly. The lease expiry date was on 1 August 2090. Having 65 years outstanding we calculated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of expenses.