The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Sefton have the right to extend the lease for an additional 90 years under Leasehold Reform legislation. Please give careful consideration before delaying your Sefton lease extension. Shelving the costs today simply increases the premium you will ultimately be required to pay for a lease extension.
Leasehold properties in Sefton with in excess of 100 years unexpired 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 property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Coventry Building Society | |
| Nationwide Building Society | |
| TSB | |
| Virgin |
The conveyancing solicitors that we work with procure Sefton 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 conveyancer we work with provide it.
Felix was the the leasehold proprietor of a studio apartment in Sefton on the market with a lease of fraction over 61 years remaining. Felix on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Felix to invoke his statutory right. Felix obtained expert advice and secured an acceptable deal without going to tribunal and readily saleable.
Mrs Alicia Young owned a basement apartment in Sefton in October 1995. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparable flats in Sefton with 100 year plus lease were worth £218,000. The average ground rent payable was £45 collected annually. The lease termination date was in 2089. Taking into account 63 years left we calculated the premium to the landlord to extend the lease to be between £17,100 and £19,800 not including costs.
Last Autumn we were approach by Mr Owen Taylor , who acquired a studio apartment in Sefton in May 2005. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar properties in Sefton with 100 year plus lease were worth £265,000. The mid-range amount of ground rent was £55 billed quarterly. The lease lapsed on 1 June 2100. Taking into account 74 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.