Winterbourne leases on domestic deteriorating in value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Winterbourne will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain circumstances you may not be entitled. There are prescribed timetables and formalities to comply with once the process has started so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Winterbourne with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
Engaging our service will provide you increased control over the value of your Winterbourne leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted negotiations with the landlord of her ground floor apartment in Winterbourne, Hollie initiated the lease extension process as the 80 year threshold was rapidly advancing. The transaction was concluded in September 2009. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. R Anderson took over the lease of a basement apartment in Winterbourne in February 1997. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable flats in Winterbourne with a long lease were valued about £184,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease ended on 21 June 2078. Given that there were 53 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus legals.
Mr and Mrs. T Richardson was assigned a lease of a one bedroom apartment in Winterbourne in February 2002. The question was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Identical flats in Winterbourne with an extended lease were valued about £290,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease came to a finish on 8 October 2098. Having 73 years unexpired we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.