The value of Warrington leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the unexpired lease term is less than 80 years
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in Warrington,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Warrington valuers.
Trailing lengthy discussions with the freeholder of her basement apartment in Warrington, Lily started the lease extension process as the 80 year threshold was rapidly nearing. The transaction was finalised in March 2006. The freeholder’s costs were kept to an absolute minimum.
Last August we were phoned by Mrs T Moore , who took over the lease of a one bedroom apartment in Warrington in August 1996. We are asked if we could estimate the price would be to prolong the lease by an additional years. Similar premises in Warrington with a long lease were in the region of £208,200. The mid-range amount of ground rent was £65 invoiced quarterly. The lease expiry date was in 2086. Having 61 years outstanding we estimated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of expenses.
Last month we were phoned by Mr R White , who took over the lease of a studio apartment in Warrington in April 2002. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative premises in Warrington with a long lease were valued about £260,000. The mid-range ground rent payable was £50 invoiced monthly. The lease came to a finish in 2097. Considering the 72 years remaining we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.