Birkenhead leases on domestic deteriorating in value. Where your lease has about 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be payable. Leasehold owners in Birkenhead will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to check if you qualify. In certain situations you may not be entitled. There are prescribed deadlines and steps to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold premises in Birkenhead with more than 100 years outstanding on the lease are often 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 upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Birkenhead can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in this area.
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 a wealth of experience procuring Birkenhead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted discussions with the freeholder of her studio apartment in Birkenhead, Mia initiated the lease extension process as the eighty year threshold was quickly advancing. The legal work completed in July 2013. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. V Jackson bought a garden apartment in Birkenhead in July 2009. The question was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparative homes in Birkenhead with a long lease were in the region of £290,000. The average ground rent payable was £45 billed yearly. The lease concluded in 2099. Given that there were 73 years unexpired we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.
Last Autumn we were contacted by Mr and Mrs. V Brown , who was assigned a lease of a studio flat in Birkenhead in May 2008. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparative residencies in Birkenhead with a long lease were worth £243,000. The average amount of ground rent was £65 invoiced every twelve months. The lease finished on 16 January 2089. Having 63 years unexpired we approximated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 not including costs.