The closer a residential lease in Liverpool gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, over 99 years remaining then this decrease may be of little impact however there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner rather than later. The majority of flat owners in Liverpool will qualify for this right; however a lawyer can confirm if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Lease extensions in Liverpool can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 a wealth of experience procuring Liverpool lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Hugo was the the leasehold owner of a studio apartment in Liverpool being marketed with a lease of a few days over fifty eight years unexpired. Hugo on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Hugo to invoke his statutory right. Hugo procured expert advice and secured satisfactory deal informally and sell the flat.
Mr and Mrs. B Roberts acquired a basement apartment in Liverpool in August 2007. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparable properties in Liverpool with an extended lease were in the region of £275,000. The average amount of ground rent was £65 invoiced per annum. The lease finished on 28 January 2094. Taking into account 68 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.
Mr and Mrs. W García owned a ground floor flat in Liverpool in August 2011. The question was if we could estimate the premium would be for a ninety year extension to my lease. Similar homes in Liverpool with a long lease were in the region of £208,600. The mid-range amount of ground rent was £60 collected annually. The lease elapsed in 2083. Having 57 years outstanding we calculated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus legals.