With a domestic leasehold premises in Widnes, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear 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 increases markedly notably once there are fewer than 80 years remaining. Leasehold owners in Widnes with a lease nearing 81 years unexpired should seriously think of extending it sooner rather than later. When a lease has fewer than 80 years remaining, under the current Act the freeholder is entitled to calculate and demand a larger amount, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Widnes with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Widnes,the lease extension experts that we work with will always be willing 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.
Half a year ago Harvey, came very close to the eighty-year mark with the lease on his leasehold flat in Widnes. Having purchased his home two decades ago, the lease term was of minimal concern. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Harvey extended the lease at the eleventh hour in March. Harvey and the freeholder eventually agreed on the final figure of £5,500 . If he had missed the deadline, the sum would have escalated by at least £1,000.
Mr and Mrs. E Evans acquired a ground floor flat in Widnes in April 2001. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparable premises in Widnes with an extended lease were valued about £255,000. The mid-range ground rent payable was £50 invoiced annually. The lease finished on 15 June 2095. Given that there were 70 years left we estimated the compensation to the freeholder to extend the lease to be within £10,500 and £12,000 not including expenses.
Last Winter we were called by Dr Chantelle Jackson , who purchased a one bedroom flat in Widnes in January 2010. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative properties in Widnes with a long lease were valued around £246,800. The mid-range ground rent payable was £60 collected per annum. The lease ran out in 2075. Having 50 years left we calculated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 exclusive of expenses.