It’s a harsh truth that a Widnes residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Widnes property market.Once your lease nears 85ish years, you should start considering a lease extension. If lease term dips below 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Widnes will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold properties in Widnes with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle Widnes lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
14 months ago Matthew, came precariously near to the eighty-year threshold with the lease on his one bedroom flat in Widnes. Having bought his home 18 years previously, the unexpired term was of little interest. Thankfully, he realised he needed to take steps soon on a lease extension. Matthew arranged for a lease extension just ahead of time last August. Matthew and the landlord who owned the flat above ultimately agreed on sum of £5,500 . If the lease had slid below 80 years, the amount would have increased by a minimum £1,150.
In 2014 we were e-mailed by Ms T Petit who, having completed a first floor apartment in Widnes in February 1999. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Identical residencies in Widnes with a long lease were worth £176,200. The average amount of ground rent was £65 collected quarterly. The lease concluded on 16 June 2081. Given that there were 56 years as a residual term we approximated the premium to the landlord for the lease extension to be within £29,500 and £34,000 plus expenses.
Mr O Mercier took over the lease of a purpose-built flat in Widnes in April 2002. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Similar premises in Widnes with an extended lease were in the region of £242,600. The mid-range ground rent payable was £45 billed every twelve months. The lease ended on 8 July 2092. Given that there were 67 years left we calculated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 not including costs.