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 close to or less than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension 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 addressed in advance of the eighty year cut off point. Current legislation enables Winsford qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Winsford with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
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 conveyancer we work with provide it.
Last October Ibrahim, came critically near to the eighty-year threshold with the lease on his leasehold flat in Winsford. In buying his home two decades ago, the unexpired term was of little importance. by good luck, he noticed he would soon be paying way over the odds for Extending the lease. Ibrahim extended the lease at the eleventh hour last September. Ibrahim and the landlord subsequently settled on the final figure of £5,500 . If the lease had slid below eighty years, the amount would have become more costly by at least £900.
In 2013 we were approached by Dr C Bailey who, having owned a ground floor apartment in Winsford in July 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Comparable flats in Winsford with 100 year plus lease were worth £254,200. The mid-range ground rent payable was £60 collected per annum. The lease lapsed on 27 January 2077. Given that there were 51 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 plus legals.
Mr and Mrs. F Green acquired a basement apartment in Winsford in January 2000. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Similar homes in Winsford with an extended lease were worth £210,600. The average amount of ground rent was £45 collected yearly. The lease expiry date was in 2088. Given that there were 62 years remaining we estimated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 plus professional charges.