When it comes to long leasehold property in Winterton, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Anyone in Winterton with a lease approaching 81 years left should seriously consider extending it without delay. When a lease has under eighty years left, under the relevant statute the landlord is entitled to calculate and levy a larger premium, based on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | 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. |
Lease extensions in Winterton can be a difficult process. We recommend you get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Winterton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago James, came perilously close to the 80-year mark with the lease on his leasehold flat in Winterton. Having bought his home two decades ago, the length of the lease was of minimal interest. As luck would have it, he became aware that he needed to take action soon on a lease extension. James arranged for a lease extension just under the wire in September. James and the freeholder in the end settled on a premium of £5,000 . If he had missed the deadline, the price would have increased by a minimum £900.
Last month we were approach by Mr and Mrs. C Bertrand , who purchased a ground floor flat in Winterton in August 2010. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Identical properties in Winterton with 100 year plus lease were valued around £256,600. The average amount of ground rent was £60 billed per annum. The lease came to a finish on 25 October 2078. Taking into account 52 years as a residual term we estimated the premium to the landlord for the lease extension to be between £41,800 and £48,400 plus fees.
Mr and Mrs. V Bernard acquired a garden flat in Winterton in July 2006. The dilemma was if we could approximate the premium would likely be to prolong the lease by ninety years. Comparable premises in Winterton with a long lease were in the region of £218,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease terminated in 2089. Having 63 years left we calculated the premium to the landlord to extend the lease to be between £17,100 and £19,800 not including professional charges.