Chances are that where you own a flat in Warrington you actually own a long leasehold interest over your property
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 additional 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Warrington,the lease extension lawyers 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.
Subsequent to unsuccessful negotiations with the landlord of her basement flat in Warrington, Ellie commenced the lease extension process just as her lease was nearing the crucial 80-year deadline. The legal work was concluded in September 2010. The freeholder’s costs were kept to an absolute minimum.
Mrs V Nguyen bought a purpose-built flat in Warrington in June 2003. The question was if we could estimate the price would likely be to extend the lease by 90 years. Similar premises in Warrington with an extended lease were in the region of £290,000. The average amount of ground rent was £60 collected yearly. The lease expired in 2105. Given that there were 80 years remaining we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus fees.
In 2009 we were approached by Dr Georgia Cox who, having moved into a recently refurbished apartment in Warrington in November 2004. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative homes in Warrington with 100 year plus lease were valued about £200,800. The average ground rent payable was £65 collected yearly. The lease elapsed on 24 July 2085. Considering the 60 years as a residual term we approximated the premium to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of expenses.