With a domestic leasehold property in Warrington, you are actually purchasing a right to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Anyone in Warrington with a lease approaching 81 years left should seriously consider extending it as soon as possible. Once the lease term has under eighty years outstanding, under the relevant statute the landlord can calculate and levy a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Warrington with more than 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Warrington can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Warrington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Alex, came very near to the eighty-year threshold with the lease on his garden apartment in Warrington. Having purchased his home two decades ago, the unexpired term was of little concern. by good luck, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Alex was able to extend his lease just under the wire in March. Alex and the freeholder eventually agreed on the final figure of £5,000 . If the lease had fallen below eighty years, the figure would have gone up by a minimum £850.
Last Autumn we were e-mailed by Mr Connor Howard , who owned a purpose-built apartment in Warrington in August 1998. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Comparative premises in Warrington with a long lease were worth £280,000. The average amount of ground rent was £55 billed annually. The lease ended in 2102. Given that there were 77 years remaining we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of fees.
In 2013 we were called by Ms E Sánchez who, having moved into a garden flat in Warrington in March 2006. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Comparable homes in Warrington with 100 year plus lease were worth £183,600. The mid-range ground rent payable was £65 collected yearly. The lease ended on 18 June 2082. Taking into account 57 years remaining we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including costs.