Top reasons for Liverpool lease extension

Main reasons to commence your Liverpool lease extension today:

A Liverpool lease depreciates with the years remaining on the lease.

Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Liverpool. Clearly, the period of lease left reduces as time goes by. This may slip by relatively unnoticed when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Liverpool have the right to extend the lease for an additional ninety years under statute. Do give careful deliberation before putting off your Liverpool lease extension. Putting off the cost now likely increases the price you will ultimately incur to extend your lease

An extended lease is almost the same value as a freehold

It is generally considered that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.

Mortgage lenders may not finance a property on a short lease

Most mortgage lenders have narrowed their lending criteria in recent years and borrowers are finding it increasingly difficult to raise finance or re-mortgage against property with shorter lease terms, particularly below 75 years as they are deemed to be insufficient for lending purposes.

Get in touch with one of our Liverpool lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Liverpool,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Liverpool valuers.

Liverpool Lease Extension Case Summaries:

Alexander, Liverpool, Merseyside

Last October Alexander, came seriously close to the 80-year mark with the lease on his two bedroom flat in Liverpool. In buying his home two decades ago, the unexpired term was of little interest. Thankfully, he noticed he would soon be paying an escalated premium for Extending the lease. Alexander extended the lease just ahead of time last January. Alexander and the landlord eventually agreed on sum of £5,000 . If the lease had dropped to less than eighty years, the amount would have increased by a minimum £1,025.

Liverpool case:

Mr V Rose took over the lease of a purpose-built flat in Liverpool in June 1998. The dilemma 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. Similar premises in Liverpool with 100 year plus lease were worth £201,200. The average ground rent payable was £55 invoiced annually. The lease ran out on 16 May 2082. Considering the 56 years left we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of professional charges.

Liverpool case:

Last year we were approach by Mr Mason Watson , who completed a ground floor flat in Liverpool in May 1995. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Identical flats in Liverpool with an extended lease were valued about £300,000. The mid-range ground rent payable was £50 billed monthly. The lease expired in 2102. Considering the 76 years remaining we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.