For those whose Wallasey home is held on a long lease, the message is clear – if nothing is done, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to procure a lease extension.
Leasehold properties in Wallasey with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Retaining our service gives you better control over the value of your Wallasey leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
William owned a high value apartment in Wallasey being sold with a lease of a few days over 59 years left. William on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of 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 William to invoke his statutory right. William procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
Ms Hollie Wilson took over the lease of a one bedroom flat in Wallasey in January 2005. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Wallasey with a long lease were in the region of £208,600. The mid-range ground rent payable was £60 billed monthly. The lease ran out in 2082. Given that there were 57 years remaining we calculated the premium to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of costs.
In 2010 we were approached by Dr Francesca Turner who, having bought a recently refurbished flat in Wallasey in August 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparative flats in Wallasey with an extended lease were in the region of £200,000. The mid-range ground rent payable was £50 billed per annum. The lease concluded in 2102. Having 77 years unexpired we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.