With a residential leasehold premises in Winsford, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably once there are fewer than eighty years left. Residents in Winsford with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once a lease has fewer than 80 years remaining, under the current statute the landlord can calculate and demand a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
| 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. |
Engaging our service gives you enhanced control over the value of your Winsford leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy discussions with the freeholder of her leasehold apartment in Winsford, Emily started the lease extension process as the eighty year mark was rapidly coming. The transaction was finalised in November 2010. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were phoned by Dr Sophia Girard who, having completed a ground floor flat in Winsford in November 2006. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Similar residencies in Winsford with an extended lease were in the region of £237,600. The average ground rent payable was £45 billed every twelve months. The lease expiry date was in 2093. Considering the 67 years remaining we estimated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 plus fees.
In 2013 we were e-mailed by Mr and Mrs. U Nguyen who, having purchased a purpose-built apartment in Winsford in November 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Identical properties in Winsford with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £55 collected yearly. The lease finished on 19 May 2104. Taking into account 78 years outstanding we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of costs.