Unfortunately that a Maghull residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Maghull property prices.Where your lease has approximately 90 years left, you should start thinking about 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 eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Maghull will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the process.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly 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. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Using our service will provide you enhanced control over the value of your Maghull leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the freeholder of her ground floor flat in Maghull, Katie initiated the lease extension process as the eighty year mark was swiftly nearing. The lease extension was concluded in October 2008. The freeholder’s fees were kept to an absolute minimum.
In 2014 we were phoned by Dr P Reed who, having took over the lease of a garden flat in Maghull in March 2005. The question was if we could estimate the premium would be for a 90 year extension to my lease. Comparable residencies in Maghull with 100 year plus lease were valued about £275,000. The average ground rent payable was £55 billed every twelve months. The lease concluded in 2102. Taking into account 77 years left we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of legals.
In 2012 we were contacted by Dr Ben Dupont who, having acquired a recently refurbished apartment in Maghull in September 1995. The question was if we could approximate the price would likely be to prolong the lease by 90 years. Comparative residencies in Maghull with an extended lease were worth £183,600. The average ground rent payable was £65 collected annually. The lease concluded on 9 September 2082. Given that there were 57 years left we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including professional charges.