Warrington leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Warrington enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Warrington you should check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Warrington with more than 100 years outstanding on the lease are sometimes regarded as a ‘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 |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Warrington 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.
Jonathan owned a conversion apartment in Warrington being sold with a lease of a few days over 61 years outstanding. Jonathan on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Jonathan to exercise his statutory right. Jonathan procured expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
Last Christmas we were e-mailed by Mr U Carter , who moved into a studio flat in Warrington in March 1998. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparative homes in Warrington with 100 year plus lease were worth £270,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease came to a finish in 2101. Having 75 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.
In 2010 we were phoned by Mr and Mrs. P Smith who, having bought a newly refurbished apartment in Warrington in April 2010. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical premises in Warrington with a long lease were worth £173,800. The average ground rent payable was £60 billed annually. The lease came to a finish on 23 April 2081. Given that there were 55 years remaining we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of fees.