The re-sale value of a leasehold property in Winsford is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. Ideally one should start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be concluded well before the eighty year mark. Statute enables Winsford qualifying lessees to an additional term of 90 years over and above the unexpired term, at a nominal rent (zero ground rent). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Winsford with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
|Barnsley Building Society||60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.|
|Birmingham Midshires|| Minimum 70 years from the date of the mortgage.|
|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.|
|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. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
The conveyancers that we work with undertake 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.
16 months ago Arthur, came seriously near to the eighty-year mark with the lease on his ground floor flat in Winsford. Having bought his flat two decades ago, the unexpired term was of minimal importance. by good luck, he realised he would imminently be paying an escalated premium for a lease extension. Arthur was able to extend his lease just in the nick of time last September. Arthur and the landlord who owned the flat above subsequently agreed on sum of £6,000 . If the lease had descended below 80 years, the sum would have gone up by at least £1,050.
Dr I Clarke purchased a first floor flat in Winsford in January 2000. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Similar premises in Winsford with an extended lease were in the region of £176,200. The average amount of ground rent was £65 billed every twelve months. The lease lapsed on 13 June 2076. Considering the 56 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 exclusive of costs.
In 2012 we were approached by Dr Erin Fournier who, having acquired a studio flat in Winsford in July 2006. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Winsford with a long lease were valued about £242,600. The average amount of ground rent was £45 billed monthly. The lease end date was in 2087. Taking into account 67 years left we approximated the premium to the landlord for the lease extension to be between £11,400 and £13,200 plus professional charges.