Liverpool residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Liverpool lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Daniel was the the leasehold owner of a 2 bedroom flat in Liverpool being sold with a lease of just over 59 years outstanding. Daniel on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Daniel to exercise his statutory right. Daniel obtained expert advice and secured an acceptable deal without going to tribunal and readily saleable.
Last Winter we were e-mailed by Dr Bethan Lambert , who was assigned a lease of a garden flat in Liverpool in February 2010. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Identical premises in Liverpool with an extended lease were in the region of £174,200. The mid-range ground rent payable was £55 collected yearly. The lease terminated on 19 September 2077. Given that there were 51 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including costs.
In 2011 we were phoned by Ms I Morel who, having completed a one bedroom apartment in Liverpool in September 2001. We are asked if we could approximate the premium would be for a 90 year lease extension. Similar properties in Liverpool with an extended lease were in the region of £285,000. The average amount of ground rent was £45 invoiced quarterly. The lease terminated on 4 August 2097. Considering the 71 years remaining we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.