Speke leases on domestic properties are gradually losing value. Where your lease has about 90 years left, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Speke will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain cases you may not qualify. There are prescribed deadlines and steps to follow once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold premises in Speke with over 100 years remaining on the lease are sometimes 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 maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Speke can be a difficult process. We recommend you obtain professional help from a lawyer and valuer 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 Speke lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful discussions with the freeholder of her leasehold apartment in Speke, Maisie started the lease extension process just as her lease was nearing the all-important eighty-year threshold. The legal work completed in August 2007. The landlord’s fees were restricted to less than 550 pounds.
Last Summer we were approach by Mr and Mrs. T Wright , who moved into a garden flat in Speke in September 2007. The dilemma was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparable flats in Speke with 100 year plus lease were in the region of £232,800. The mid-range ground rent payable was £45 billed every twelve months. The lease expired in 2091. Considering the 65 years remaining we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including costs.
Last Winter we were e-mailed by Mr and Mrs. O Roux , who owned a studio apartment in Speke in January 1998. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Identical residencies in Speke with an extended lease were valued about £275,000. The average ground rent payable was £55 collected yearly. The lease concluded on 28 August 2102. Given that there were 76 years remaining we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.