Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Widnes. Inevitably, the period of lease left reduces over time. This may slip by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Eligible long lease owners in Widnes have the right to extend the lease for an additional 90 years under statute. You should give careful deliberation before delaying your Widnes lease extension. Holding off the cost now likely increases the price you will eventually have to pay for a lease extension
Leasehold properties in Widnes with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Halifax | |
| Leeds Building Society | |
| Royal Bank of Scotland |
Engaging our service gives you better 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 lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Oscar owned a conversion flat in Widnes on the market with a lease of fraction over 59 years left. Oscar informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Oscar to invoke his statutory right. Oscar procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2011 we were e-mailed by Mr Benjamin Michel who, having bought a ground floor apartment in Widnes in May 2007. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar properties in Widnes with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease came to a finish in 2105. Having 79 years left we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including legals.
Last Autumn we were contacted by Dr Ben Carter , who took over the lease of a garden apartment in Widnes in June 2006. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Comparative properties in Widnes with an extended lease were valued about £193,400. The mid-range amount of ground rent was £65 collected every twelve months. The lease came to a finish on 25 November 2085. Given that there were 59 years remaining we calculated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 plus fees.