Unfortunately that a Greasby 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 depreciation being disguised by increases in the Greasby 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 lower than 80 years - otherwise a higher amount will be due. Most leasehold owners in Greasby will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold premises in Greasby with more than one hundred years left on the lease are often 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 to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Birmingham Midshires | 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. |
| 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 |
| 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. |
Lease extensions in Greasby can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in this area.
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 procuring Greasby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful correspondence with the freeholder of her purpose-built apartment in Greasby, Gemma initiated the lease extension process as the eighty year threshold was rapidly coming. The legal work was finalised in March 2015. The landlord’s charges were kept to an absolute minimum.
Last month we were approach by Dr Harvey Petit , who moved into a first floor apartment in Greasby in March 1998. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Comparable flats in Greasby with 100 year plus lease were in the region of £246,800. The average amount of ground rent was £60 billed annually. The lease ended in 2076. Taking into account 50 years remaining we estimated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 plus expenses.
Last month we were phoned by Dr Charlie King , who bought a studio apartment in Greasby in August 2002. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Identical residencies in Greasby with an extended lease were in the region of £208,200. The average ground rent payable was £65 collected every twelve months. The lease ran out in 2087. Given that there were 61 years outstanding we calculated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 not including fees.