Why you should start your Widnes lease extension

Top reasons for lease extension now:

A Widnes leasehold property depreciates with the years remaining on the lease.

Widnes leases on domestic properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. If lease term is less than 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Widnes will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain cases you may not qualify. There are also strict deadlines and formalities to follow once the process has started so it’s prudent to be guided by a conveyancer during the process.

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

It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years ahead.

Mortgage lenders will not finance a property on a short lease

Nearly all mortgage lenders will not grant a mortgage on a lease with less than 70 years left to run - although this varies from lender to lender. A buyer will likely find it difficult in obtaining a mortgage and this could result in your Widnes property becoming difficult to sell or to obtain finance on.

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

Irrespective of whether you are a tenant or a freeholder in Widnes,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Widnes valuers.

Widnes Lease Extension Example Cases:

Joseph, Widnes, Cheshire

In recent months Joseph, came precariously close to the eighty-year threshold with the lease on his purpose- built flat in Widnes. In buying his home two decades ago, the unexpired term was of little significance. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Joseph extended the lease just ahead of time in May. Joseph and the freeholder ultimately settled on a premium of £5,000 . If he failed to meet the deadline, the price would have gone up by a minimum £1,025.

Widnes case:

Mr and Mrs. N Harris purchased a recently refurbished apartment in Widnes in October 2003. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparative premises in Widnes with an extended lease were valued about £200,800. The mid-range ground rent payable was £65 collected per annum. The lease ended on 11 June 2086. Considering the 60 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 not including legals.

Widnes case:

In 2010 we were phoned by Ms R Bonnet who, having completed a one bedroom apartment in Widnes in February 2004. We are asked if we could estimate the premium could be to extend the lease by a further 90 years. Comparable premises in Widnes with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 collected quarterly. The lease end date was on 19 January 2097. Considering the 71 years remaining we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.