The re-sale value of a leasehold property in Winsford depends on how long the lease has left to run. If it is close to or less than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the lease extension process when the lease still has 82 years to run so that all matters can be finalised ahead of the eighty year mark. Leasehold Reform legislation entitles Winsford qualifying lessees to obtain a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately 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 |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Winsford,the lease extension lawyers 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.
During the course of the last few months Harry, came very close to the 80-year mark with the lease on his studio flat in Winsford. In buying his flat 19 years previously, the lease term was of no bearing. Fortunately, he became aware that he would soon be paying an inflated amount for Extending the lease. Harry extended the lease at the eleventh hour in March. Harry and the landlord who owned the flat above in the end settled on the final figure of £5,000 . If the lease had gone below eighty years, the premium would have become more costly by at least £1,100.
Last Winter we were contacted by Dr L Brown , who took over the lease of a ground floor apartment in Winsford in January 2007. The question was if we could approximate the premium would likely be for a ninety year lease extension. Identical properties in Winsford with 100 year plus lease were in the region of £203,200. The average ground rent payable was £65 invoiced per annum. The lease came to a finish in 2087. Given that there were 61 years remaining we approximated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 exclusive of costs.
In 2010 we were e-mailed by Mr and Mrs. B Thomas who, having owned a garden flat in Winsford in May 2003. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical residencies in Winsford with 100 year plus lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced annually. The lease termination date was in 2097. Taking into account 71 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.