When it comes to long leasehold property in Childwall, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly once there are less than eighty years left. Leasehold owners in Childwall with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When a lease has below 80 years remaining, under the current legislation the landlord can calculate and demand a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Childwall lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Trailing unsuccessful correspondence with the landlord of her purpose-built apartment in Childwall, Maisie initiated the lease extension process as the eighty year deadline was quickly nearing. The legal work completed in August 2015. The freeholder’s fees were negotiated to a tad over 700 GBP.
Mr S Reed moved into a studio flat in Childwall in August 1999. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in Childwall with 100 year plus lease were worth £275,000. The average amount of ground rent was £55 collected yearly. The lease came to a finish in 2101. Having 76 years unexpired we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.
In 2014 we were e-mailed by Dr U Stewart who, having owned a one bedroom flat in Childwall in July 2006. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical properties in Childwall with 100 year plus lease were in the region of £176,200. The mid-range ground rent payable was £65 billed per annum. The lease termination date was on 16 July 2081. Taking into account 56 years outstanding we approximated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 not including professional charges.