Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Wallasey. Clearly, the period of lease left reduces as time goes by. This is often ignored and only becomes a problem when the residence needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible leaseholders in Wallasey have the right to extend the lease for a further ninety years under legislation. You should give careful consideration before putting off your Wallasey lease extension. Holding off the cost now likely increases the price you will eventually have to pay for a lease extension
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Regardless of whether you are a tenant or a landlord in Wallasey,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wallasey valuers.
During the course of the last few months Sam, came very near to the eighty-year mark with the lease on his garden flat in Wallasey. In buying his property two decades ago, the length of the lease was of little bearing. As luck would have it, he noticed he needed to take action soon on Extending the lease. Sam extended the lease at the eleventh hour last August. Sam and the landlord in the end agreed on sum of £5,500 . If the lease had slid lower than 80 years, the price would have become more costly by a minimum £925.
Ms Elizabeth González purchased a ground floor flat in Wallasey in January 2000. We are asked if we could approximate the premium could be for a 90 year lease extension. Similar premises in Wallasey with 100 year plus lease were in the region of £257,800. The average amount of ground rent was £65 billed every twelve months. The lease ended in 2090. Considering the 65 years remaining we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of costs.
Last Autumn we were contacted by Mr Adam Allen , who acquired a ground floor apartment in Wallasey in January 1995. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar residencies in Wallasey with 100 year plus lease were worth £191,400. The average ground rent payable was £55 collected per annum. The lease finished in 2079. Taking into account 54 years as a residual term we approximated the premium to the landlord for the lease extension to be between £34,200 and £39,600 not including fees.