Winsford leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Winsford enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Winsford you really ought to check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Godiva Mortgages | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Winsford leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Luca, came precariously close to the eighty-year mark with the lease on his purpose- built flat in Winsford. In buying his property two decades ago, the unexpired term was of minimal significance. Fortunately, he noticed he needed to take action soon on a lease extension. Luca extended the lease at the eleventh hour in April. Luca and the landlord subsequently agreed on sum of £5,000 . If he not met the deadline, the price would have become more costly by a minimum £900.
In 2014 we were phoned by Dr L Davis who, having owned a recently refurbished apartment in Winsford in October 2003. We are asked if we could estimate the price would likely be for a ninety year lease extension. Similar properties in Winsford with a long lease were worth £285,000. The average ground rent payable was £55 invoiced yearly. The lease terminated on 4 February 2105. Having 80 years as a residual term we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.
In 2009 we were e-mailed by Dr Austin Ward who, having acquired a one bedroom flat in Winsford in May 2008. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable homes in Winsford with a long lease were worth £200,800. The average amount of ground rent was £65 billed per annum. The lease end date was in 2085. Given that there were 60 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 exclusive of costs.