The closer a domestic lease in Everton nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, beyond 100 years remaining then this decrease may be of little impact however there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Most flat owners in Everton will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Everton with over 100 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 upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 gives you increased control over the value of your Everton leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jack was the the leasehold proprietor of a 2 bedroom apartment in Everton on the market with a lease of a few days over 61 years unexpired. Jack on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be due on a lease extension were Jack to exercise his statutory right. Jack procured expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Ms Alisha Richardson purchased a ground floor apartment in Everton in January 2001. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable properties in Everton with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £55 billed monthly. The lease came to a finish in 2104. Given that there were 78 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of legals.
Last month we were phoned by Dr Abbie André , who bought a garden apartment in Everton in May 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Identical properties in Everton with an extended lease were worth £186,000. The mid-range ground rent payable was £65 invoiced annually. The lease concluded in 2084. Given that there were 58 years as a residual term we calculated the premium to the landlord to extend the lease to be within £24,700 and £28,600 not including legals.