Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Widnes. Inevitably, the term of lease left shortens over time. This may pass by relatively unnoticed when the property has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Eligible leaseholders in Widnes have the right to extend the lease for a further ninety years in accordance with legislation. You should give careful deliberation before putting off your Widnes lease extension. Putting off that expense now simply increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Widnes can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Widnes lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of protracted correspondence with the landlord of her two bedroom flat in Widnes, Jade commenced the lease extension process as the eighty year threshold was rapidly advancing. The legal work completed in April 2010. The landlord’s fees were kept to an absolute minimum.
In 2010 we were approached by Dr Millie Garcia who, having completed a one bedroom flat in Widnes in February 2009. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Comparative properties in Widnes with 100 year plus lease were worth £290,000. The average ground rent payable was £60 billed yearly. The lease ended on 16 May 2106. Taking into account 80 years remaining we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus expenses.
In 2012 we were e-mailed by Ms J Cook who, having completed a one bedroom apartment in Widnes in January 1995. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by ninety years. Comparable flats in Widnes with an extended lease were valued around £200,800. The mid-range ground rent payable was £65 billed quarterly. The lease concluded in 2086. Given that there were 60 years remaining we calculated the premium to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of professional charges.