When it comes to residential leasehold property in Winterbourne, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Anyone in Winterbourne with a lease approaching 81 years left should seriously think of extending it as soon as possible. When the lease term has under eighty years outstanding, under the relevant legislation the landlord is entitled to calculate and demand a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Winterbourne with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Irrespective 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 the wake of eight months of unsuccessful negotiations with the landlord of her basement apartment in Winterbourne, Natasha started the lease extension process just as her lease was coming close to the all-important eighty-year mark. The transaction completed in August 2013. The freeholder’s charges were negotiated to about 600 pounds.
Mr and Mrs. U Walker completed a one bedroom flat in Winterbourne in November 2006. The question was if we could approximate the price could be to prolong the lease by a further 90 years. Comparable residencies in Winterbourne with 100 year plus lease were valued about £275,000. The average amount of ground rent was £65 invoiced quarterly. The lease concluded in 2093. Having 68 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.
Dr Gabriel Clarke took over the lease of a ground floor flat in Winterbourne in July 1999. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Identical properties in Winterbourne with a long lease were in the region of £208,600. The mid-range ground rent payable was £60 invoiced yearly. The lease finished on 9 October 2082. Given that there were 57 years outstanding we calculated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus professional charges.