For anyone whose Widdrington flat is held on a long lease, our message is clear – if no remedial action is taken, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same 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 ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Coventry Building Society | |
| Halifax | |
| Santander | |
| The Mortgage Works |
Retaining our service will provide you better control over the value of your Widdrington leasehold, as your property will be more valuable and saleable in terms of lease length should you decide 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.
Freddie owned a high value flat in Widdrington being marketed with a lease of just over sixty years outstanding. Freddie informally approached his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Freddie to exercise his statutory right. Freddie procured expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
Last Autumn we were phoned by Dr P Rivera , who purchased a basement apartment in Widdrington in September 2002. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Similar residencies in Widdrington with 100 year plus lease were in the region of £275,000. The average ground rent payable was £65 collected yearly. The lease concluded in 2094. Considering the 68 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.
Dr F Brown purchased a one bedroom flat in Widdrington in November 2006. The question was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparable homes in Widdrington with an extended lease were worth £213,600. The mid-range ground rent payable was £60 billed annually. The lease elapsed in 2083. Taking into account 57 years remaining we calculated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus fees.