When it comes to residential leasehold premises in Aigburth, you are actually buying an entitlement to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than eighty years left. Leasehold owners in Aigburth with a lease nearing 81 years left should seriously think of extending it sooner rather than later. When a lease has below eighty years remaining, under the current legislation the landlord can calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for decades to come.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Engaging our service gives you enhanced control over the value of your Aigburth leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Autumn Jayden, started to get close to the 80-year threshold with the lease on his purpose- built apartment in Aigburth. In buying his property twenty years ago, the lease term was of minimal significance. Thankfully, he noticed he would imminently be paying an inflated amount for Extending the lease. Jayden was able to extend his lease just under the wire last July. Jayden and the landlord in the end settled on the final figure of £5,000 . If he failed to meet the deadline, the price would have increased by at least £875.
Mr and Mrs. G Thomas completed a garden flat in Aigburth in May 1999. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparative flats in Aigburth with 100 year plus lease were worth £189,000. The average ground rent payable was £55 collected yearly. The lease ran out on 14 March 2078. Considering the 53 years outstanding we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus legals.
Last Winter we were contacted by Ms Mollie Brown , who took over the lease of a purpose-built flat in Aigburth in May 2002. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparable homes in Aigburth with a long lease were in the region of £290,000. The average ground rent payable was £45 billed monthly. The lease lapsed in 2098. Considering the 73 years unexpired we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.