When it comes to residential leasehold property in Widnes, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly once there are fewer than 80 years remaining. Residents in Widnes with a lease nearing 81 years unexpired should seriously think of extending it sooner as opposed to later. Once a lease has under 80 years outstanding, under the relevant legislation the landlord can calculate and levy a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Widnes with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Widnes,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Widnes valuers.
After unsuccessful negotiations with the freeholder of her two bedroom apartment in Widnes, Sophie initiated the lease extension process just as her lease was approaching the critical 80-year mark. The lease extension was concluded in August 2005. The landlord’s fees were restricted to a tad over 500 pounds.
In 2011 we were contacted by Mr Seth Simon who, having bought a one bedroom flat in Widnes in August 1995. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Identical homes in Widnes with a long lease were valued around £250,000. The average ground rent payable was £50 billed quarterly. The lease ended in 2095. Considering the 69 years left we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
Last Christmas we were phoned by Mrs J Hernández , who owned a basement apartment in Widnes in July 2004. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Similar flats in Widnes with 100 year plus lease were worth £290,000. The average amount of ground rent was £60 collected per annum. The lease ended on 9 March 2106. Considering the 80 years left we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.