Sefton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Sefton tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Sefton you must investigate if your lease has between 70 and 90 years left. There are good reasons why a Sefton flat owner with a lease having around eighty years remaining should take action to ensure that a lease extension is actioned without delay
Leasehold residencies in Sefton with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Lease extensions in Sefton can be a difficult process. We recommend you obtain 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 a wealth of experience 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.
Arthur was the the leasehold owner of a conversion apartment in Sefton on the market with a lease of just over 61 years remaining. Arthur on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Arthur to exercise his statutory right. Arthur procured expert legal guidance and secured an acceptable deal informally and sell the flat.
Last Christmas we were approach by Mr and Mrs. H Morris , who was assigned a lease of a garden flat in Sefton in November 2004. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparable residencies in Sefton with an extended lease were valued around £176,200. The average ground rent payable was £65 billed yearly. The lease elapsed in 2082. Having 56 years outstanding we approximated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 not including professional charges.
In 2011 we were phoned by Mr and Mrs. I Moreau who, having purchased a studio apartment in Sefton in September 2000. The question was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparable flats in Sefton with an extended lease were in the region of £242,600. The average amount of ground rent was £45 invoiced annually. The lease expired in 2093. Taking into account 67 years outstanding we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 not including expenses.