For anyone whose Warrington flat is held on a long lease, our message is clear – if no remedial action is taken, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
Leasehold properties in Warrington with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Warrington leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish 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.
Off the back of lengthy correspondence with the landlord of her garden flat in Warrington, Leah commenced the lease extension process as the 80 year threshold was swiftly nearing. The transaction completed in October 2015. The landlord’s costs were kept to an absolute minimum.
In 2013 we were phoned by Dr Charlie López who, having bought a one bedroom flat in Warrington in July 2005. The question was if we could estimate the price could be to prolong the lease by a further 90 years. Comparable properties in Warrington with 100 year plus lease were worth £280,000. The average ground rent payable was £55 invoiced per annum. The lease concluded in 2103. Taking into account 78 years remaining we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus legals.
Last Christmas we were e-mailed by Ms Katie Torres , who owned a one bedroom apartment in Warrington in April 2012. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Identical flats in Warrington with 100 year plus lease were valued around £191,000. The average ground rent payable was £65 billed quarterly. The lease finished on 5 October 2083. Considering the 58 years remaining we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 not including costs.