The nearer a domestic lease in Winterbourne gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, over one hundred years remaining then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Most flat owners in Winterbourne will qualify for this right; nevertheless a conveyancing solicitor can advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Winterbourne with more than 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 premises. 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with handle Winterbourne 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 conveyancing solicitor we work with provide it.
During the course of the last few months Jonathan, came seriously close to the 80-year mark with the lease on his basement apartment in Winterbourne. Having bought his flat 19 years previously, the lease term was of minimal interest. As luck would have it, he became aware that he would soon be paying an escalated premium for Extending the lease. Jonathan was able to extend his lease just under the wire in June. Jonathan and the freeholder in the end settled on sum of £6,000 . If the lease had gone lower than eighty years, the figure would have escalated by at least £1,025.
In 2011 we were approached by Dr O Morgan who, having purchased a purpose-built flat in Winterbourne in July 1996. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparable flats in Winterbourne with an extended lease were worth £285,000. The mid-range ground rent payable was £45 collected per annum. The lease terminated on 2 November 2098. Given that there were 72 years outstanding we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.
Mrs N Moore moved into a garden flat in Winterbourne in February 2007. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Identical properties in Winterbourne with a long lease were worth £233,200. The average amount of ground rent was £60 collected annually. The lease elapsed in 2087. Having 61 years outstanding we estimated the premium to the landlord for the lease extension to be between £22,800 and £26,400 plus fees.