Winton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result 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 ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Winton you should check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Halifax | |
| National Westminster Bank | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Engaging our service will provide you better control over the value of your Winton leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Caleb owned a conversion apartment in Winton being sold with a lease of just over sixty years remaining. Caleb on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. No ground rent would be due on a lease extension were Caleb to exercise his statutory right. Caleb obtained expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
In 2014 we were contacted by Mr J Roberts who, having moved into a newly refurbished apartment in Winton in July 2003. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparable premises in Winton with a long lease were valued around £260,000. The average amount of ground rent was £50 billed annually. The lease lapsed in 2097. Taking into account 71 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.
Mr and Mrs. H Bailey completed a newly refurbished apartment in Winton in June 1997. We are asked if we could approximate the compensation to the landlord 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 £254,200. The mid-range amount of ground rent was £60 collected per annum. The lease elapsed on 23 June 2077. Taking into account 51 years left we calculated the premium to the landlord to extend the lease to be between £43,700 and £50,600 plus expenses.