Winton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Winton tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Winton you really ought to check if your lease has between seventy and ninety years left. There are compelling reasons why a Winton leaseholder with a lease having around eighty years remaining should take steps to make sure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for decades to come.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
The conveyancers that we work with procure Winton 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.
Following unsuccessful discussions with the freeholder of her ground floor flat in Winton, Jessica commenced the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The transaction was concluded in September 2014. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. H Anderson completed a ground floor flat in Winton in October 1998. The dilemma was if we could approximate the price could be for a ninety year lease extension. Comparative premises in Winton with 100 year plus lease were worth £261,600. The mid-range ground rent payable was £60 invoiced annually. The lease end date was on 4 November 2078. Considering the 52 years unexpired we calculated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 exclusive of expenses.
Mr Stanley Torres purchased a studio flat in Winton in May 1995. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Comparative premises in Winton with 100 year plus lease were in the region of £218,000. The mid-range amount of ground rent was £45 collected quarterly. The lease lapsed in 2089. Considering the 63 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 plus expenses.