It’s an underpublicised truth that a Childwall residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Childwall property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be payable. Most leasehold owners in Childwall will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold residencies in Childwall with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Childwall leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful discussions with the landlord of her first floor apartment in Childwall, Amelia started the lease extension process as the eighty year mark was rapidly nearing. The legal work was finalised in July 2005. The landlord’s fees were negotiated to about 550 pounds.
Last Christmas we were approach by Ms Chantelle Evans , who owned a purpose-built flat in Childwall in June 2000. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by ninety years. Comparable homes in Childwall with an extended lease were worth £237,600. The average ground rent payable was £45 billed quarterly. The lease lapsed in 2093. Taking into account 67 years remaining we calculated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 not including costs.
Last month we were approach by Mr and Mrs. I Gunderson , who purchased a recently refurbished flat in Childwall in November 2007. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Similar flats in Childwall with a long lease were valued around £280,000. The mid-range ground rent payable was £55 billed monthly. The lease came to a finish in 2104. Considering the 78 years unexpired we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus costs.