As the the remaining lease term of a Winton residential lease lessens so does its value and therefore the value of your property. Where the lease has, over 100 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Many flat owners in Winton will meet the qualifying criteria; that being said a lawyer will be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Coventry Building Society | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Winton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Winton valuers.
Last October Tommy, started to get near to the eighty-year mark with the lease on his two bedroom apartment in Winton. Having purchased his home twenty years previously, the unexpired term was of minimal concern. As luck would have it, he became aware that he would soon be paying way over the odds for Extending the lease. Tommy was able to extend his lease just in the nick of time last January. Tommy and the landlord ultimately agreed on the final figure of £5,500 . If he not met the deadline, the sum would have become more exhorbitant by a minimum £1,075.
Mrs J Flores acquired a purpose-built apartment in Winton in April 2001. The question was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative flats in Winton with a long lease were worth £275,000. The mid-range ground rent payable was £55 collected annually. The lease elapsed on 14 June 2102. Considering the 76 years remaining we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.
Ms T Leroy moved into a garden apartment in Winton in February 2009. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Similar flats in Winton with a long lease were valued around £176,200. The average amount of ground rent was £65 collected annually. The lease ended on 27 August 2082. Given that there were 56 years left we calculated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 plus fees.