Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Warrington. Inevitably, the period of lease left shortens over time. This is often overlooked and only becomes a problem when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Warrington have the legal entitlement to extend the lease for an additional ninety years in accordance with legislation. Do give due deliberation before putting off your Warrington lease extension. Putting off the cost now likely increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure Warrington 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 lawyer we work with provide it.
Sebastian owned a 2 bedroom flat in Warrington being marketed with a lease of a few days over 61 years outstanding. Sebastian informally spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Sebastian to exercise his statutory right. Sebastian procured expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
Dr E Peterson was assigned a lease of a one bedroom flat in Warrington in June 2011. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparable properties in Warrington with a long lease were in the region of £191,000. The average ground rent payable was £65 invoiced quarterly. The lease ran out on 23 July 2082. Given that there were 58 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £23,800 and £27,400 exclusive of costs.
In 2013 we were contacted by Ms F Clark who, having was assigned a lease of a studio apartment in Warrington in January 2006. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative premises in Warrington with 100 year plus lease were worth £250,000. The mid-range amount of ground rent was £50 collected monthly. The lease came to a finish on 7 April 2093. Taking into account 69 years outstanding we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.