When it comes to residential leasehold premises in Winscombe, you are in fact renting it for a certain period of time. In recent years 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 may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly once there are fewer than 80 years remaining. Anyone in Winscombe with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has below 80 years remaining, under the relevant legislation the landlord can calculate and charge a greater amount, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Winscombe with more than one hundred years left on the lease are often 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 upside in purchasing the reversionary interest unless savings on ground rent and service charges merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
| 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 Winscombe,the lease extension experts 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 Winscombe valuers.
Half a year ago Joshua, started to get near to the 80-year mark with the lease on his purpose- built apartment in Winscombe. In buying his flat two decades ago, the lease term was of no importance. Luckily, he noticed he would soon be paying way over the odds for Extending the lease. Joshua was able to extend his lease just ahead of time in March. Joshua and the freeholder subsequently settled on an amount of £6,000 . If the lease had slipped lower than eighty years, the sum would have increased by a minimum £850.
In 2011 we were e-mailed by Dr F Ricardo who, having bought a studio apartment in Winscombe in March 2005. The question was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparative homes in Winscombe with 100 year plus lease were valued about £181,600. The average amount of ground rent was £55 invoiced yearly. The lease expired in 2077. Having 52 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 not including expenses.
Last Summer we were e-mailed by Ms U Hill , who took over the lease of a one bedroom flat in Winscombe in May 2008. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Comparable premises in Winscombe with 100 year plus lease were valued around £290,000. The average ground rent payable was £45 billed monthly. The lease ran out on 9 September 2097. Taking into account 72 years unexpired we estimated the premium to the landlord to extend the lease to be within £11,400 and £13,200 exclusive of fees.