With a long leasehold property in Winsford, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are less than eighty years remaining. Residents in Winsford with a lease approaching 81 years remaining should seriously think of extending it without delay. Once the lease term has under 80 years left, under the relevant statute the landlord is entitled to calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Winsford 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 conveyancer we work with provide it.
Trailing lengthy correspondence with the landlord of her one bedroom apartment in Winsford, Jade initiated the lease extension process just as the lease was nearing the all-important 80-year deadline. The transaction was finalised in September 2005. The landlord’s costs were kept to an absolute minimum.
Ms Abbie Evans moved into a one bedroom flat in Winsford in September 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Winsford with an extended lease were valued around £235,200. The mid-range ground rent payable was £45 billed every twelve months. The lease terminated on 12 June 2092. Given that there were 66 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.
Last Spring we were called by Mrs T Rivera , who bought a first floor apartment in Winsford in May 1997. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar premises in Winsford with 100 year plus lease were worth £275,000. The average ground rent payable was £55 collected every twelve months. The lease ended on 17 July 2103. Given that there were 77 years remaining we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.