With a long leasehold premises in Warrington, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly once there are fewer than eighty years left. Residents in Warrington with a lease drawing near to 81 years left should seriously consider extending it without delay. Once the lease term has less than 80 years remaining, under the current legislation the freeholder is entitled to calculate and levy a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Warrington can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Warrington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Blake, came very near to the 80-year threshold with the lease on his two bedroom apartment in Warrington. In buying his flat 19 years previously, the lease term was of no interest. Thankfully, he became aware that he would imminently be paying an inflated amount for a lease extension. Blake extended the lease just under the wire last September. Blake and the landlord subsequently agreed on the final figure of £5,000 . If he not met the deadline, the amount would have gone up by a minimum £950.
Mrs R Stewart took over the lease of a purpose-built apartment in Warrington in January 1998. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Similar flats in Warrington with 100 year plus lease were worth £242,600. The average ground rent payable was £45 billed quarterly. The lease lapsed on 5 May 2093. Considering the 67 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of professional charges.
Mrs Isabella Rivera completed a ground floor apartment in Warrington in July 2000. The question was if we could approximate the premium would be for a 90 year lease extension. Comparable properties in Warrington with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease ended on 11 September 2104. Considering the 78 years remaining we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus fees.