The market value of a leasehold property in Widnes is impacted by how many years the lease has left to run. If it is near to or less than eighty years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the lease extension process when a lease still has 82 years to run so that all matters can be concluded ahead of the eighty year mark. Current legislation enables Widnes qualifying lessees to acquire a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 Widnes can be a difficult process. We recommend you secure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 Widnes 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 Matthew, came perilously near to the eighty-year mark with the lease on his two bedroom flat in Widnes. Having purchased his flat two decades ago, the lease term was of little concern. Fortunately, he recognised he needed to take action soon on Extending the lease. Matthew arranged for a lease extension at the eleventh hour last March. Matthew and the freeholder ultimately settled on the final figure of £5,500 . If the lease had descended lower than 80 years, the price would have escalated by a minimum £1,125.
Last Autumn we were contacted by Dr Joseph Smith , who moved into a ground floor apartment in Widnes in May 1996. The question was if we could estimate the price could be for a ninety year extension to my lease. Comparative homes in Widnes with 100 year plus lease were worth £191,000. The mid-range amount of ground rent was £65 billed annually. The lease came to a finish on 16 November 2083. Considering the 58 years outstanding we calculated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 exclusive of expenses.
Mr Jason Allen owned a garden flat in Widnes in July 2012. The question was if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Comparative premises in Widnes with 100 year plus lease were worth £250,000. The average amount of ground rent was £50 invoiced annually. The lease expired on 20 April 2094. Given that there were 69 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.