With a residential leasehold premises in Maghull, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are less than 80 years remaining. Anyone in Maghull with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has fewer than 80 years outstanding, under the relevant legislation the freeholder can calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Maghull can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 dealing with Maghull lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of unsuccessful negotiations with the landlord of her purpose-built apartment in Maghull, Erin started the lease extension process as the 80 year deadline was quickly nearing. The legal work was finalised in January 2005. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. D Bennett acquired a garden apartment in Maghull in February 1999. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparable flats in Maghull with an extended lease were worth £264,000. The average ground rent payable was £60 collected per annum. The lease termination date was on 21 May 2078. Considering the 53 years unexpired we approximated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 plus legals.
Last Spring we were phoned by Mr and Mrs. D Lewis , who was assigned a lease of a one bedroom apartment in Maghull in April 1999. We are asked if we could approximate the premium would be for a ninety year lease extension. Identical flats in Maghull with 100 year plus lease were in the region of £220,400. The average ground rent payable was £45 billed annually. The lease expiry date was in 2089. Having 64 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £16,200 and £18,600 exclusive of expenses.