With a residential leasehold property in Winsford, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years left. Leasehold owners in Winsford with a lease drawing near to 81 years remaining should seriously consider extending it without delay. Once a lease has below eighty years outstanding, under the relevant statute the landlord is entitled to calculate and levy a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 conveyancers that we work with handle 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.
Off the back of protracted negotiations with the freeholder of her purpose-built apartment in Winsford, Kayleigh started the lease extension process as the 80 year mark was quickly advancing. The transaction was concluded in February 2006. The landlord’s fees were negotiated to approximately 450 GBP.
Mr Luca Rose took over the lease of a one bedroom flat in Winsford in May 2010. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Comparable premises in Winsford with a long lease were valued about £168,800. The average ground rent payable was £60 collected monthly. The lease lapsed in 2081. Taking into account 55 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of fees.
Mr and Mrs. G Rose acquired a garden apartment in Winsford in July 2006. The question was if we could estimate the price would be for a 90 year extension to my lease. Identical residencies in Winsford with a long lease were in the region of £235,200. The mid-range ground rent payable was £45 billed quarterly. The lease lapsed on 17 May 2092. Taking into account 66 years left we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.