With a residential leasehold premises in Widnes, you effectively rent it for a certain amount 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 long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly once there are less than 80 years remaining. Residents in Widnes with a lease approaching 81 years unexpired should seriously think of extending it without delay. When the lease term has less than 80 years outstanding, under the current legislation the freeholder can calculate and charge a greater amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
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 residence will be worth the same as a freehold for many years in the future.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Widnes,the lease extension lawyers 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.
Ollie was the the leasehold owner of a high value apartment in Widnes being marketed with a lease of just over sixty years remaining. Ollie on an informal basis spoke with his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ollie to invoke his statutory right. Ollie procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Summer we were phoned by Dr Robyn García , who moved into a newly refurbished apartment in Widnes in October 2006. We are asked if we could estimate the price would be for a ninety year extension to my lease. Identical properties in Widnes with an extended lease were valued about £242,600. The average ground rent payable was £45 billed quarterly. The lease expired on 21 September 2092. Given that there were 67 years remaining we estimated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 not including costs.
Mr Sam Baker completed a ground floor apartment in Widnes in April 2011. The question was if we could approximate the price would likely be to extend the lease by a further 90 years. Similar homes in Widnes with a long lease were valued about £280,000. The mid-range ground rent payable was £55 invoiced yearly. The lease elapsed in 2103. Having 78 years left we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.