The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Wallasey can extend the lease for an additional ninety years in accordance with statute. Please think carefully before delaying your Wallasey lease extension. Postponing that expense now simply escalates the amount you will eventually be required to pay for a lease extension.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure 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 conveyancing solicitor we work with provide it.
Jackson was the the leasehold owner of a high value flat in Wallasey being marketed with a lease of just over 59 years left. Jackson informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Jackson to invoke his statutory right. Jackson procured expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2010 we were approached by Mrs Abbie Edwards who, having moved into a studio flat in Wallasey in February 2006. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Identical properties in Wallasey with 100 year plus lease were valued about £210,000. The average ground rent payable was £50 collected quarterly. The lease finished in 2105. Considering the 80 years remaining we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.
Last month we were approach by Ms Rachael Bell , who purchased a studio apartment in Wallasey in July 2009. The question was if we could estimate the premium would be for a 90 year extension to my lease. Similar homes in Wallasey with an extended lease were in the region of £275,000. The mid-range ground rent payable was £45 billed per annum. The lease came to a finish on 12 February 2094. Considering the 69 years remaining we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.