For those whose Winslow property is held on a long lease, our message is clear – if nothing is done, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Winslow 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.
In recent months Zachary, came precariously close to the eighty-year threshold with the lease on his one bedroom flat in Winslow. Having purchased his home two decades ago, the unexpired term was of no concern. Thankfully, he noticed he would soon be paying an escalated premium for Extending the lease. Zachary extended the lease at the eleventh hour in July. Zachary and the landlord in the end settled on a premium of £5,000 . If the lease had fallen below 80 years, the figure would have become more exhorbitant by a minimum £875.
In 2014 we were phoned by Dr Alex Reed who, having bought a recently refurbished flat in Winslow in April 1999. The question was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Identical properties in Winslow with an extended lease were worth £220,400. The mid-range ground rent payable was £45 billed monthly. The lease came to a finish in 2090. Considering the 64 years left we estimated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 not including legals.
Last March we were e-mailed by Dr J Young , who moved into a ground floor flat in Winslow in October 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparable premises in Winslow with 100 year plus lease were in the region of £270,000. The average ground rent payable was £55 invoiced per annum. The lease lapsed in 2101. Considering the 75 years remaining we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.