On the balance of probabilities if you own a flat in Wallasey you actually own a long leasehold interest over your property
Leasehold premises in Wallasey with over 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 to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 lawyers that we work with undertake Wallasey 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.
Blake owned a conversion apartment in Wallasey on the market with a lease of fraction over 72 years remaining. Blake 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 freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Blake to exercise his statutory right. Blake obtained expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Dr Y Wilson was assigned a lease of a one bedroom apartment in Wallasey in June 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative properties in Wallasey with 100 year plus lease were valued about £240,600. The mid-range amount of ground rent was £60 billed yearly. The lease lapsed on 8 June 2088. Considering the 62 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 not including fees.
In 2012 we were phoned by Mr and Mrs. C Lefebvre who, having moved into a garden flat in Wallasey in May 1996. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Similar flats in Wallasey with an extended lease were valued around £174,200. The average amount of ground rent was £55 collected yearly. The lease came to a finish in 2077. Taking into account 51 years unexpired we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including costs.