Unfortunately that a Warrington residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Warrington property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining drops below 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Warrington will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 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 |
|---|---|
| Godiva Mortgages | |
| Nationwide Building Society | |
| Skipton Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a freeholder in Warrington,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Warrington valuers.
Edward was the the leasehold proprietor of a conversion flat in Warrington on the market with a lease of fraction over sixty years left. Edward on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Edward to exercise his statutory right. Edward procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last Summer we were approach by Mr I Thompson , who was assigned a lease of a purpose-built flat in Warrington in November 2003. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparable homes in Warrington with 100 year plus lease were valued around £255,000. The mid-range amount of ground rent was £50 billed annually. The lease finished on 2 August 2096. Considering the 70 years outstanding we calculated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 plus expenses.
In 2010 we were phoned by Mr and Mrs. N François who, having took over the lease of a basement apartment in Warrington in May 1999. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable premises in Warrington with an extended lease were valued about £246,800. The mid-range ground rent payable was £60 invoiced every twelve months. The lease elapsed on 20 January 2076. Considering the 50 years left we estimated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 exclusive of expenses.