The only way is down when it comes to Winterbourne lease terms. Winterbourne flats that have a remaining term lower than eighty years will drop in market price even faster, and the cost to extend your lease will increase.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with procure 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.
Owen owned a 2 bedroom flat in Winterbourne on the market with a lease of a few days over 59 years outstanding. Owen on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Owen to invoke his statutory right. Owen procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
Ms Jennifer Dupont took over the lease of a ground floor apartment in Winterbourne in April 2001. We are asked if we could approximate the premium would be to extend the lease by 90 years. Comparative properties in Winterbourne with an extended lease were in the region of £300,000. The average ground rent payable was £50 collected yearly. The lease finished on 8 April 2102. Having 76 years outstanding we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus professional charges.
Last month we were approach by Ms Millie Rogers , who owned a basement apartment in Winterbourne in April 2012. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar premises in Winterbourne with a long lease were worth £257,800. The mid-range amount of ground rent was £65 invoiced yearly. The lease expiry date was on 2 July 2091. Having 65 years as a residual term we calculated the premium to the landlord to extend the lease to be between £18,100 and £20,800 plus fees.