The market value of a leasehold property in Winsford depends on how long the lease has remaining. If it is close to or less than eighty years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be concluded in advance of the 80 year threshold. Current legislation enables Winsford qualifying lessees to an additional term of 90 years over and above the existing term, at a notional rent (no ground rent). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Winsford,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Winsford valuers.
Callum was the the leasehold owner of a high value apartment in Winsford being sold with a lease of a few days over 72 years left. Callum on an informal basis contacted his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Callum to exercise his statutory right. Callum procured expert legal guidance and secured an acceptable deal informally and sell the property.
Last Autumn we were approach by Mr and Mrs. M Nelson , who was assigned a lease of a one bedroom flat in Winsford in May 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Winsford with 100 year plus lease were in the region of £183,600. The average amount of ground rent was £65 collected per annum. The lease expired on 12 February 2081. Having 57 years left we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus expenses.
Last Christmas we were approach by Mrs Victoria Cox , who acquired a garden flat in Winsford in July 2004. The question was if we could approximate the price would likely be to extend the lease by ninety years. Comparable premises in Winsford with 100 year plus lease were valued around £245,000. The average ground rent payable was £50 billed per annum. The lease lapsed on 8 May 2092. Having 68 years remaining we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.