Winsford leases on residential deteriorating in value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term is under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Winsford will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to comply with once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Winsford with over 100 years unexpired 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 circumstances there is often little upside in 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Regardless of whether you are a tenant or a landlord in Winsford,the lease extension experts 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.
In 2014 Luca, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Winsford. Having bought his home twenty years ago, the lease term was of no interest. Fortunately, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Luca arranged for a lease extension just ahead of time in January. Luca and the landlord who owned the flat above in the end agreed on a premium of £6,000 . If the lease had slipped to less than eighty years, the price would have become more exhorbitant by a minimum £1,075.
In 2011 we were phoned by Mr O Norbert who, having acquired a studio apartment in Winsford in October 1996. The question was if we could estimate the price would likely be for a 90 year lease extension. Comparable premises in Winsford with a long lease were worth £200,800. The mid-range amount of ground rent was £65 invoiced quarterly. The lease termination date was in 2085. Having 60 years unexpired we calculated the premium to the landlord to extend the lease to be between £20,900 and £24,200 not including expenses.
In 2014 we were e-mailed by Mrs Lily Taylor who, having was assigned a lease of a newly refurbished apartment in Winsford in March 2000. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical residencies in Winsford with an extended lease were worth £255,000. The mid-range ground rent payable was £50 collected annually. The lease lapsed in 2096. Considering the 71 years remaining we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.