The only way is down when it comes to Winterbourne lease terms. Winterbourne leaseholds that have a remaining term shorter than 80 years will de-escalate in market price even faster, and the cost to extend your lease will increase.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Lloyds TSB Scotland | 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 75 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a landlord in Winterbourne,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 Winterbourne valuers.
In 2014 Omar, started to get near to the 80-year threshold with the lease on his basement apartment in Winterbourne. Having bought his flat two decades ago, the unexpired term was of no bearing. Luckily, he noticed he would soon be paying an escalated premium for a lease extension. Omar was able to extend his lease at the eleventh hour last June. Omar and the freeholder via the management company in the end settled on a premium of £5,000 . If he failed to meet the deadline, the figure would have become more costly by at least £900.
In 2011 we were phoned by Mr Jackson Patel who, having acquired a first floor flat in Winterbourne in October 1995. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical flats in Winterbourne with 100 year plus lease were valued about £260,200. The mid-range ground rent payable was £65 collected every twelve months. The lease finished in 2092. Taking into account 66 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 not including fees.
In 2013 we were approached by Mr Callum Scott who, having completed a one bedroom apartment in Winterbourne in July 2006. We are asked if we could approximate the premium could be to extend the lease by 90 years. Comparable homes in Winterbourne with an extended lease were worth £198,800. The mid-range amount of ground rent was £55 billed yearly. The lease terminated on 5 March 2081. Taking into account 55 years remaining we estimated the premium to the landlord to extend the lease to be within £33,300 and £38,400 not including expenses.