The closer a domestic lease in Winterbourne gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, more than 99 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Most flat owners in Winterbourne will qualify for this right; that being said a conveyancer can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date 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 |
Irrespective of whether you are a tenant or a freeholder in Winterbourne,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 Winterbourne valuers.
Jonathan was the the leasehold proprietor of a 2 bedroom flat in Winterbourne on the market with a lease of just over 72 years outstanding. Jonathan on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Jonathan to exercise his statutory right. Jonathan procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Mr and Mrs. P Rogers moved into a garden flat in Winterbourne in July 1997. The question was if we could estimate the price would be for a ninety year extension to my lease. Comparable premises in Winterbourne with a long lease were in the region of £300,000. The mid-range amount of ground rent was £50 collected monthly. The lease expired on 20 May 2100. Having 76 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.
Last month we were e-mailed by Mr and Mrs. Y Mercier , who was assigned a lease of a newly refurbished flat in Winterbourne in August 2006. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Comparative properties in Winterbourne with 100 year plus lease were worth £252,800. The mid-range ground rent payable was £65 invoiced yearly. The lease expired in 2089. Considering the 65 years outstanding we estimated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 not including legals.