With a long leasehold premises in Widnes, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should 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 consider extending it without delay. When a lease has less than eighty years left, under the relevant statute the freeholder can calculate and demand a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.
It is generally considered that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Using our service will provide you enhanced control over the value of your Widnes leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Freddie, started to get close to the eighty-year threshold with the lease on his basement apartment in Widnes. Having bought his flat 19 years previously, the lease term was of little importance. by good luck, he became aware that he would imminently be paying an escalated premium for Extending the lease. Freddie was able to extend his lease just under the wire last June. Freddie and the landlord in the end agreed on a premium of £6,000 . If he had missed the deadline, the sum would have increased by at least £1,000.
Mr and Mrs. D Cooper purchased a one bedroom flat in Widnes in September 2006. We are asked if we could approximate the price could be to prolong the lease by ninety years. Identical residencies in Widnes with a long lease were in the region of £235,200. The average amount of ground rent was £45 billed yearly. The lease came to a finish in 2090. Considering the 66 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including legals.
Mr and Mrs. R Bernard took over the lease of a basement apartment in Widnes in April 2008. The dilemma was if we could approximate the price would be for a ninety year lease extension. Identical residencies in Widnes with a long lease were worth £280,000. The average amount of ground rent was £55 billed yearly. The lease lapsed in 2101. Taking into account 77 years unexpired we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus expenses.