Unfortunately that a Winsford residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Winsford property market.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher amount will be due. Most leasehold owners in Winsford will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold premises in Winsford with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure 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 conveyancing solicitor we work with provide it.
Two years ago Aarav, started to get near to the eighty-year threshold with the lease on his two bedroom apartment in Winsford. Having purchased his flat 19 years previously, the length of the lease was of minimal significance. Thankfully, he became aware that he would soon be paying an inflated amount for Extending the lease. Aarav extended the lease just under the wire last August. Aarav and the freeholder ultimately agreed on an amount of £6,000 . If the lease had slid lower than eighty years, the sum would have escalated by a minimum £1,050.
Last month we were contacted by Mr and Mrs. B Lewis , who acquired a one bedroom apartment in Winsford in September 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Comparative homes in Winsford with 100 year plus lease were worth £176,200. The mid-range amount of ground rent was £65 billed quarterly. The lease concluded in 2081. Considering the 56 years remaining we estimated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 exclusive of professional charges.
Mr and Mrs. B Rivera moved into a one bedroom apartment in Winsford in May 2012. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Identical properties in Winsford with a long lease were worth £237,600. The average amount of ground rent was £45 invoiced annually. The lease elapsed in 2092. Considering the 67 years unexpired we estimated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of fees.