For anyone whose Winterton property is held on a long lease, our message is clear – if no remedial action is taken, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension.
Leasehold residencies in Winterton with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth 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 service charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Engaging our service gives you increased control over the value of your Winterton leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful correspondence with the landlord of her one bedroom apartment in Winterton, Megan commenced the lease extension process as the eighty year mark was swiftly advancing. The lease extension completed in October 2005. The landlord’s charges were restricted to under 600 pounds.
In 2010 we were called by Mr T Sánchez who, having acquired a recently refurbished apartment in Winterton in July 2002. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Similar properties in Winterton with an extended lease were worth £193,400. The mid-range amount of ground rent was £65 billed annually. The lease lapsed on 6 February 2085. Given that there were 59 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 not including costs.
In 2012 we were e-mailed by Mr and Mrs. Y Gómez who, having was assigned a lease of a recently refurbished apartment in Winterton in February 2010. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Identical properties in Winterton with a long lease were valued about £250,000. The average ground rent payable was £50 invoiced yearly. The lease concluded in 2096. Having 70 years remaining we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.