It’s an underpublicised truth that a Everton residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Everton property market.Where your lease has approximately 90 years left, you need to start thinking about 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 slips below eighty years - otherwise a higher amount will be due. Most flat owners in Everton will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Everton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Everton valuers.
After protracted correspondence with the freeholder of her studio apartment in Everton, Rachael initiated the lease extension process just as her lease was coming close to the all-important 80-year deadline. The legal work was concluded in October 2012. The freeholder’s fees were negotiated to below 500 GBP.
Mr and Mrs. C Cook acquired a purpose-built flat in Everton in October 2005. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Identical flats in Everton with a long lease were in the region of £166,400. The average amount of ground rent was £60 invoiced annually. The lease finished in 2080. Having 54 years as a residual term we approximated the premium to the landlord for the lease extension to be within £32,300 and £37,400 plus fees.
In 2010 we were e-mailed by Mrs Isabella Ricardo who, having bought a ground floor flat in Everton in October 2011. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable homes in Everton with an extended lease were in the region of £227,800. The average ground rent payable was £45 billed annually. The lease termination date was in 2091. Given that there were 65 years unexpired we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including fees.