Winsford leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Winsford enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Winsford you should investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Winsford leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is put in place without delay
Leasehold residencies in Winsford with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a freeholder 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.
James owned a studio apartment in Winsford being sold with a lease of a little over 59 years unexpired. James informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were James to exercise his statutory right. James procured expert advice and secured satisfactory deal informally and sell the flat.
Last Summer we were phoned by Mr and Mrs. F Clarke , who owned a studio flat in Winsford in March 2011. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparable residencies in Winsford with 100 year plus lease were valued about £265,000. The mid-range ground rent payable was £50 invoiced monthly. The lease terminated on 9 November 2100. Given that there were 74 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Mrs U Anderson was assigned a lease of a first floor apartment in Winsford in August 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable residencies in Winsford with 100 year plus lease were worth £166,400. The average ground rent payable was £60 collected per annum. The lease terminated in 2080. Taking into account 54 years outstanding we calculated the premium to the landlord to extend the lease to be within £32,300 and £37,400 not including expenses.