With a residential leasehold premises in Sefton, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are less than eighty years remaining. Anyone in Sefton with a lease approaching 81 years left should seriously consider extending it without delay. When the lease term has below eighty years left, under the relevant legislation the landlord is entitled to calculate and levy a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Sefton with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Sefton can be a difficult process. We recommend you obtain 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 in-depth market knowledge dealing with Sefton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Joshua was the the leasehold owner of a studio flat in Sefton on the market with a lease of fraction over 72 years remaining. Joshua on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Joshua to invoke his statutory right. Joshua procured expert advice and secured an acceptable resolution informally and readily saleable.
In 2010 we were phoned by Mr and Mrs. H Ramírez who, having moved into a one bedroom flat in Sefton in January 2006. We are asked if we could approximate the price could be for a ninety year lease extension. Comparable properties in Sefton with a long lease were in the region of £208,200. The average ground rent payable was £65 invoiced yearly. The lease termination date was on 6 July 2086. Having 61 years unexpired we estimated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of fees.
Last month we were contacted by Mr and Mrs. T Evans , who purchased a ground floor flat in Sefton in May 2012. The question was if we could approximate the price would likely be for a 90 year lease extension. Identical premises in Sefton with an extended lease were valued around £260,000. The mid-range amount of ground rent was £50 billed annually. The lease terminated on 8 August 2097. Given that there were 72 years left we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.