As the length of the unexpired term of a Widnes residential lease diminished so does its value and therefore the value of your property. If the residual term has, beyond one hundred years to run then this decrease may be negligible however there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner than later. Most flat owners in Widnes will meet the qualifying criteria; nevertheless a lawyer can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Widnes with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
Retaining our service will provide you enhanced control over the value of your Widnes leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Omar owned a high value apartment in Widnes on the market with a lease of a few days over fifty eight years unexpired. Omar on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be payable on a lease extension were Omar to exercise his statutory right. Omar obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
Mr and Mrs. W Girard took over the lease of a first floor flat in Widnes in May 2012. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Identical flats in Widnes with a long lease were worth £245,000. The average ground rent payable was £50 billed every twelve months. The lease concluded on 13 July 2094. Having 68 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.
Mr and Mrs. S Brown was assigned a lease of a ground floor apartment in Widnes in August 1997. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Comparative residencies in Widnes with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £55 collected yearly. The lease expiry date was in 2105. Given that there were 79 years left we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus expenses.