It’s a harsh certainty that a Warrington residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Warrington property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining drops below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Warrington will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in Warrington with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant 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. |
| Birmingham Midshires | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Warrington,the lease extension lawyers that we work with will always be happy 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 protracted discussions with the landlord of her two bedroom flat in Warrington, Phoebe commenced the lease extension process just as her lease was coming close to the critical 80-year mark. The legal work was concluded in September 2009. The landlord’s charges were negotiated to less than five hundred GBP.
In 2014 we were approached by Mr and Mrs. O Miller who, having took over the lease of a one bedroom apartment in Warrington in July 2006. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar premises in Warrington with 100 year plus lease were valued around £245,000. The average amount of ground rent was £50 collected per annum. The lease came to a finish on 26 November 2094. Having 68 years unexpired we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.
Mr and Mrs. J Torres moved into a one bedroom flat in Warrington in June 2006. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Identical residencies in Warrington with a long lease were worth £285,000. The average amount of ground rent was £55 invoiced per annum. The lease end date was on 6 September 2105. Taking into account 79 years unexpired we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus legals.