The nearer a residential lease in Sefton gets to zero years unexpired, the more it reduces the value of the property. If the lease has, beyond 125 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Sefton will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the equivalent 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| 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 Sefton can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in this area.
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.
Callum owned a conversion apartment in Sefton on the market with a lease of fraction over 72 years outstanding. Callum informally contacted his freeholder a well known London-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 subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Callum to exercise his statutory right. Callum procured expert advice and secured an acceptable resolution without resorting to tribunal and sell the property.
In 2012 we were contacted by Mr and Mrs. V Martínez who, having owned a purpose-built flat in Sefton in February 2006. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Identical homes in Sefton with an extended lease were valued about £255,000. The average ground rent payable was £50 billed monthly. The lease concluded in 2096. Having 70 years remaining we calculated the premium to the freeholder to extend the lease to be within £10,500 and £12,000 plus professional charges.
In 2013 we were called by Dr E Lewis who, having completed a purpose-built apartment in Sefton in August 2009. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Sefton with a long lease were worth £246,800. The mid-range ground rent payable was £60 invoiced yearly. The lease ran out on 8 August 2076. Given that there were 50 years left we estimated the compensation to the landlord to extend the lease to be within £44,700 and £51,600 exclusive of fees.