The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Widdrington have the right to extend the lease for an additional ninety years under statute. Please think carefully before delaying your Widdrington lease extension. Postponing that expense now simply escalates the premium you will eventually be required to pay for a lease extension.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Halifax | |
| Leeds Building Society | |
| Royal Bank of Scotland |
Retaining our service will provide you better control over the value of your Widdrington leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful correspondence with the freeholder of her two bedroom apartment in Widdrington, Kelsey started the lease extension process just as her lease was approaching the critical eighty-year threshold. The transaction was finalised in March 2011. The freeholder’s charges were kept to an absolute minimum.
Last Winter we were approach by Mr Harry Clarke , who owned a one bedroom apartment in Widdrington in October 1995. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar residencies in Widdrington with a long lease were valued around £210,000. The mid-range ground rent payable was £50 billed per annum. The lease ended on 24 February 2106. Considering the 80 years left we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.
Dr G Hernández bought a purpose-built apartment in Widdrington in July 2004. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparative homes in Widdrington with a long lease were valued about £280,000. The mid-range amount of ground rent was £45 collected yearly. The lease ran out in 2095. Having 69 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.