The market value of Sefton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the remaining term is below than eighty years
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Using our service will provide you enhanced control over the value of your Sefton leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jonathan was the the leasehold proprietor of a studio apartment in Sefton being sold with a lease of fraction over 72 years remaining. Jonathan on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Jonathan to invoke his statutory right. Jonathan procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Dr Francesca Bennett purchased a one bedroom apartment in Sefton in May 1998. The question was if we could approximate the premium could be for a ninety year extension to my lease. Comparative homes in Sefton with a long lease were worth £270,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease expired in 2101. Considering the 75 years as a residual term we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Mr and Mrs. V Hernández was assigned a lease of a basement flat in Sefton in April 2003. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Identical flats in Sefton with 100 year plus lease were in the region of £173,800. The mid-range amount of ground rent was £60 billed monthly. The lease expiry date was in 2081. Given that there were 55 years outstanding we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 not including professional charges.