The nearer a residential lease in Wallasey nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, beyond 125 years to run then this decrease may be fractional that being said there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease sooner rather than later. Most flat owners in Wallasey will meet the qualifying criteria; however a conveyancing solicitor should be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Wallasey,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wallasey valuers.
Omar was the the leasehold owner of a 2 bedroom apartment in Wallasey on the market with a lease of a little over 59 years outstanding. Omar on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Omar to invoke his statutory right. Omar procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
Last Christmas we were e-mailed by Dr L Adams , who took over the lease of a one bedroom flat in Wallasey in November 1999. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Similar premises in Wallasey with an extended lease were worth £243,000. The average amount of ground rent was £65 billed monthly. The lease finished in 2089. Given that there were 63 years unexpired we approximated the premium to the landlord for the lease extension to be within £20,000 and £23,000 not including expenses.
In 2014 we were contacted by Dr Matthew Ali who, having acquired a ground floor apartment in Wallasey in February 2002. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable properties in Wallasey with 100 year plus lease were valued around £181,600. The mid-range ground rent payable was £55 billed every twelve months. The lease ran out on 2 November 2078. Given that there were 52 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of expenses.