Birkenhead leases on residential deteriorating in value. if your lease has about 90 years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Birkenhead will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not qualify. There are prescribed timetables and formalities to follow once the process has started so it’s sensible to be guided by a lawyer during the process.
Leasehold premises in Birkenhead with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Lease extensions in Birkenhead can be a difficult process. We recommend you procure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 dealing with Birkenhead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leon was the the leasehold proprietor of a studio flat in Birkenhead being marketed with a lease of fraction over fifty eight years left. Leon informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be payable on a lease extension were Leon to exercise his statutory right. Leon procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Dr Lewis Evans took over the lease of a ground floor flat in Birkenhead in November 1997. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Comparative properties in Birkenhead with a long lease were worth £184,000. The average amount of ground rent was £55 billed annually. The lease ended on 5 October 2079. Taking into account 53 years as a residual term we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.
In 2014 we were phoned by Mrs Eleanor Sharif who, having moved into a ground floor apartment in Birkenhead in August 1996. The question was if we could approximate the premium could be to prolong the lease by ninety years. Identical properties in Birkenhead with an extended lease were in the region of £290,000. The mid-range amount of ground rent was £45 collected yearly. The lease lapsed on 5 January 2099. Considering the 73 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.