Why you should start your Wallasey lease extension

Why you should start your Wallasey lease extension today:

A Wallasey leasehold property depreciates with the years remaining on the lease.

Wallasey leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Wallasey will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In certain situations you may not qualify. There are prescribed timetables and formalities to comply with once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.

An extended lease has roughly the same value as a freehold

Leasehold premises in Wallasey with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Lending institutions may decide not to lend on a short lease

Nearly all mortgage companies require a lengthy amount of time remaining on any leasehold property before they will contemplate providing a mortgage on it. Even if you don't need a mortgage, you should be aware that it is likely that someone intending to acquire your property in the future might well do, so in the event that they are not able to obtain a mortgage, then the market price of the property could suffer. In the last decade many mortgage lenders have increased the required minimum lease length that they are willing to lend on

Get in touch with one of our Wallasey lease extension solicitors or enfranchisement solicitors

Lease extensions in Wallasey can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in lease extensions.

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 in-depth market knowledge procuring Wallasey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Wallasey Lease Extension Example Cases:

Caleb, Wallasey, Merseyside,

Caleb owned a studio flat in Wallasey on the market with a lease of fraction over 59 years unexpired. Caleb informally contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Caleb to invoke his statutory right. Caleb obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.

Wallasey case:

Mrs Nicole Fournier owned a recently refurbished flat in Wallasey in April 2012. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparable homes in Wallasey with a long lease were in the region of £206,200. The average ground rent payable was £55 billed quarterly. The lease ended in 2082. Having 56 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of costs.

Wallasey case:

In 2011 we were approached by Ms Niamh Rodríguez who, having owned a purpose-built flat in Wallasey in May 1998. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparative properties in Wallasey with an extended lease were valued around £300,000. The mid-range amount of ground rent was £50 collected quarterly. The lease terminated in 2102. Given that there were 76 years outstanding we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.