With a long leasehold premises in Widnes, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Leasehold owners in Widnes with a lease drawing near to 81 years left should seriously think of extending it sooner as opposed to later. Once a lease has below 80 years remaining, under the current Act the landlord is entitled to calculate and charge a greater premium, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| Coventry Building Society | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Widnes,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Widnes valuers.
Kyle was the the leasehold proprietor of a conversion flat in Widnes being sold with a lease of fraction over 72 years left. Kyle on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Kyle to invoke his statutory right. Kyle procured expert legal guidance and secured an acceptable deal informally and readily saleable.
In 2013 we were e-mailed by Mr O Rodríguez who, having purchased a studio apartment in Widnes in March 1998. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Similar premises in Widnes with a long lease were valued around £218,000. The average ground rent payable was £45 invoiced yearly. The lease came to a finish on 14 March 2087. Having 63 years left we calculated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 plus fees.
In 2014 we were e-mailed by Ms U Bennett who, having purchased a one bedroom apartment in Widnes in January 2009. We are asked if we could approximate the premium would be for a ninety year lease extension. Identical flats in Widnes with 100 year plus lease were valued around £270,000. The average ground rent payable was £55 billed annually. The lease terminated on 7 September 2098. Taking into account 74 years remaining we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.