Winsford leases on residential deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be due. Leasehold owners in Winsford will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain circumstances you may not qualify. There are also strict timetables and procedures to follow once the process has commenced so it’s wise to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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.
Trailing protracted negotiations with the freeholder of her ground floor flat in Winsford, Jennifer initiated the lease extension process just as the lease was approaching the critical 80-year deadline. The lease extension was concluded in May 2007. The landlord’s charges were restricted to approximately 450 GBP.
Last Summer we were phoned by Mr and Mrs. J Bailey , who moved into a one bedroom flat in Winsford in August 1995. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Similar premises in Winsford with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 billed annually. The lease concluded on 9 March 2104. Having 79 years left we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus expenses.
In 2011 we were called by Dr C Stewart who, having moved into a one bedroom flat in Winsford in June 2002. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparable properties in Winsford with a long lease were worth £193,400. The average ground rent payable was £65 invoiced per annum. The lease ended in 2084. Given that there were 59 years remaining we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of fees.