Top reasons for Warrington lease extension

Why you should start your Warrington lease extension today:

A Warrington lease depreciates with the years remaining on the lease.

Warrington leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Warrington enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Warrington you should see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold premises in Warrington with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.

Lenders may decide not to loan monies on a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the mortgage is to be charged. This has resulted in the unexpired lease term required by banks has increased. In the past mortgage companies would grant a mortgage on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Warrington?

The conveyancing solicitors 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 conveyancer we work with provide it.

Warrington Lease Extension Example Cases:

Danielle, Warrington, Cheshire,

After lengthy negotiations with the freeholder of her ground floor apartment in Warrington, Danielle commenced the lease extension process just as the lease was nearing the crucial eighty-year mark. The lease extension completed in March 2007. The freeholder’s fees were negotiated to a tad over 700 GBP.

Warrington case:

In 2013 we were contacted by Mrs F Collins who, having acquired a first floor flat in Warrington in October 2006. The question was if we could approximate the price could be to prolong the lease by ninety years. Comparable properties in Warrington with a long lease were valued about £173,800. The average amount of ground rent was £60 invoiced quarterly. The lease came to a finish on 12 June 2081. Taking into account 55 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of fees.

Warrington case:

In 2011 we were approached by Mr and Mrs. T Bailey who, having purchased a ground floor flat in Warrington in October 2002. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Identical flats in Warrington with 100 year plus lease were valued about £235,200. The mid-range amount of ground rent was £45 collected every twelve months. The lease expired on 7 June 2092. Taking into account 66 years left we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including expenses.