On the balance of probabilities if you own a flat in Warrington you actually own a long leasehold interest over your property
Leasehold properties in Warrington with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
The conveyancers that we work with procure Warrington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Aarav was the the leasehold owner of a studio apartment in Warrington being sold with a lease of just over fifty eight years remaining. Aarav on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Aarav to exercise his statutory right. Aarav procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
Mrs I Torres moved into a ground floor apartment in Warrington in September 2000. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparative premises in Warrington with an extended lease were in the region of £275,000. The average amount of ground rent was £55 invoiced monthly. The lease end date was in 2102. Taking into account 76 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
Last Winter we were contacted by Mr and Mrs. W Hill , who took over the lease of a purpose-built flat in Warrington in February 1999. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable homes in Warrington with a long lease were valued around £176,200. The mid-range amount of ground rent was £65 collected per annum. The lease ended in 2082. Given that there were 56 years unexpired we estimated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 plus expenses.