Widnes Lease Extension - Free Consultation

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Main reasons to commence your Widnes lease extension


Main reasons to commence your Widnes lease extension today:

Increase your lease and increase your Widnes property value

Unfortunately that a Widnes residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Widnes property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be payable. Most flat owners in Widnes will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the process.

Widnes property with a lease extension is almost the same value as a freehold

It is generally accepted that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.

Mortgage lenders may not lend on a short lease

Mortgage companies are really restricting their approach as regards to homes in Widnes with short leases. For example you may find that their lending criteria are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so where you needed to sell, your only options would be to find a cash buyer, or hope for the best at auction thus restricting the amount of potential purchasers.

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;
Godiva Mortgages 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.
Leeds Building Society 85 years remaining from the start of the mortgage.
Lloyds TSB Scotland Minimum 70 years from the date 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.

Get in touch with one of our Widnes lease extension solicitors or enfranchisement solicitors

Engaging our service will provide you increased control over the value of your Widnes leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Widnes Lease Extension Case Studies:

Niamh, Widnes, Cheshire,

Trailing protracted correspondence with the freeholder of her two bedroom apartment in Widnes, Niamh commenced the lease extension process just as her lease was coming close to the critical 80-year deadline. The transaction completed in January 2015. The freeholder’s fees were kept to an absolute minimum.

Widnes case:

Last month we were phoned by Mr and Mrs. Y Jones , who owned a studio flat in Widnes in September 1995. The question was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparative homes in Widnes with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £55 invoiced per annum. The lease concluded on 13 May 2103. Taking into account 78 years unexpired we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus legals.

Widnes case:

Mr and Mrs. O Patel bought a recently refurbished flat in Widnes in February 2003. The question was if we could estimate the price would be for a 90 year lease extension. Comparable properties in Widnes with a long lease were worth £191,000. The average amount of ground rent was £65 collected quarterly. The lease lapsed on 7 January 2083. Taking into account 58 years unexpired we calculated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 not including fees.