As the the remaining lease term of a Widnes residential lease lessens so does its value and therefore the value of your property. Where the residual term has, more than 125 years to run then this decrease may be fractional that being said there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner than later. The majority of flat owners in Widnes will meet the qualifying criteria; however a conveyancing solicitor can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you better control over the value of your Widnes leasehold, as your property will be more valuable and marketable 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.
Austin owned a 2 bedroom flat in Widnes on the market with a lease of fraction over fifty eight years outstanding. Austin on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Austin to exercise his statutory right. Austin obtained expert advice and secured an acceptable resolution informally and sell the flat.
Last year we were e-mailed by Mr Muhammad Rose , who was assigned a lease of a garden flat in Widnes in April 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Comparable flats in Widnes with a long lease were worth £218,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease finished on 2 June 2089. Considering the 63 years left we calculated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 plus costs.
Mr Matthew Morgan owned a one bedroom flat in Widnes in January 2003. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Similar premises in Widnes with a long lease were in the region of £265,000. The mid-range ground rent payable was £55 billed monthly. The lease terminated on 28 May 2100. Taking into account 74 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.