For anyone whose Winslow property is held on a long lease, our message is clear – if you do nothing, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
Leasehold residencies in Winslow with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 landlord in Winslow,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Winslow valuers.
Arthur owned a conversion flat in Winslow being sold with a lease of fraction over 61 years unexpired. Arthur on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Arthur to invoke his statutory right. Arthur procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Mr and Mrs. E Jackson was assigned a lease of a ground floor flat in Winslow in June 2008. We are asked if we could approximate the price could be for a ninety year extension to my lease. Identical premises in Winslow with a long lease were in the region of £250,000. The average ground rent payable was £50 invoiced yearly. The lease expired on 9 April 2094. Having 69 years left we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.
Last Winter we were contacted by Ms Leah Roux , who moved into a studio flat in Winslow in September 2012. We are asked if we could approximate the price would be for a 90 year extension to my lease. Similar properties in Winslow with an extended lease were valued about £285,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease ran out in 2105. Having 80 years left we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.