Speke leases on domestic deteriorating in value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the existing lease dips below 80 years - otherwise a higher amount will be payable. Leasehold owners in Speke will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In certain cases you may not qualify. There are also strict deadlines and steps to comply with once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold premises in Speke with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
The conveyancing solicitors that we work with undertake Speke 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.
Last Summer Logan, started to get close to the eighty-year mark with the lease on his basement apartment in Speke. Having purchased his property two decades ago, the length of the lease was of no interest. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Logan extended the lease at the eleventh hour in May. Logan and the landlord who owned the flat above in the end agreed on sum of £5,500 . If the lease had slipped to less than eighty years, the premium would have escalated by a minimum £1,050.
Last Autumn we were e-mailed by Mr and Mrs. W Lefebvre , who bought a studio flat in Speke in November 2005. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable properties in Speke with a long lease were in the region of £173,800. The mid-range ground rent payable was £65 collected monthly. The lease ended on 11 September 2080. Having 55 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including professional charges.
Mr Kyle Thomas acquired a studio apartment in Speke in July 1995. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative homes in Speke with an extended lease were valued about £235,200. The mid-range ground rent payable was £45 collected quarterly. The lease expired on 20 November 2091. Having 66 years remaining we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.