The market value of Wallasey leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the unexpired lease term is less than 80 years
Leasehold residencies in Wallasey with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Coventry Building Society | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you better control over the value of your Wallasey leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Evan was the the leasehold proprietor of a studio flat in Wallasey on the market with a lease of fraction over 72 years unexpired. Evan on an informal basis approached his freeholder a well known local-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 subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Evan to invoke his statutory right. Evan procured expert legal guidance and secured an acceptable resolution informally and readily saleable.
Dr Felix Torres bought a basement flat in Wallasey in February 1996. The dilemma was if we could approximate the price would be to extend the lease by a further 90 years. Comparative residencies in Wallasey with an extended lease were in the region of £275,000. The mid-range ground rent payable was £45 invoiced annually. The lease end date was in 2094. Having 69 years unexpired we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
Last month we were approach by Dr V Torres , who purchased a studio flat in Wallasey in January 2000. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical flats in Wallasey with 100 year plus lease were worth £216,000. The mid-range ground rent payable was £60 collected every twelve months. The lease came to a finish in 2083. Taking into account 58 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus professional charges.