Unfortunately that a Childwall residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Childwall property prices.Where your lease has approximately 90 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 falls below eighty years - otherwise a higher amount will be payable. Most flat owners in Childwall will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold premises in Childwall with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Childwall can be a difficult process. We recommend you secure 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 in-depth market knowledge dealing with Childwall lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Austin, came precariously close to the eighty-year mark with the lease on his two bedroom apartment in Childwall. Having purchased his property two decades ago, the lease term was of no importance. As luck would have it, he noticed he needed to take steps soon on a lease extension. Austin extended the lease just in the nick of time last March. Austin and the freeholder in the end settled on a premium of £5,500 . If the lease had slid below eighty years, the price would have gone up by at least £1,075.
In 2012 we were phoned by Ms C Lambert who, having purchased a ground floor apartment in Childwall in May 2001. We are asked if we could approximate the price could be for a ninety year extension to my lease. Identical properties in Childwall with an extended lease were in the region of £210,600. The mid-range amount of ground rent was £45 collected yearly. The lease ran out on 8 November 2088. Given that there were 62 years left we approximated the premium to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of legals.
Mr Alfie Bell moved into a ground floor apartment in Childwall in July 1995. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Identical homes in Childwall with an extended lease were valued around £260,000. The mid-range ground rent payable was £50 billed monthly. The lease expired in 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 exclusive of professional charges.