Why you should start your Wallasey lease extension

Top reasons for lease extension now:

Increase your lease and increase your Wallasey property value

Wallasey leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Wallasey residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Wallasey you should see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

Wallasey property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for decades to come.

Mortgage lenders may not grant a mortgage on a short lease

The trend since 2008 has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past lenders were content with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

Get in touch with one of our Wallasey lease extension solicitors or enfranchisement solicitors

Retaining our service will provide you enhanced control over the value of your Wallasey leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Wallasey Lease Extension Case Studies:

Gabriel, Wallasey, Merseyside

Last Spring Gabriel, started to get close to the 80-year threshold with the lease on his purpose- built flat in Wallasey. Having purchased his property 18 years previously, the unexpired term was of little bearing. Luckily, he realised he needed to take action soon on a lease extension. Gabriel extended the lease just in the nick of time last January. Gabriel and the freeholder via the managing agents in the end settled on a premium of £5,500 . If he failed to meet the deadline, the amount would have become more costly by at least £1,050.

Wallasey case:

Mr T Reed acquired a one bedroom apartment in Wallasey in September 2010. The question was if we could estimate the premium could be for a 90 year extension to my lease. Identical premises in Wallasey with a long lease were valued around £295,000. The mid-range ground rent payable was £50 collected every twelve months. The lease concluded on 12 November 2101. Considering the 75 years unexpired we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of fees.

Wallasey case:

Last Christmas we were approach by Mr and Mrs. C Parker , who was assigned a lease of a one bedroom apartment in Wallasey in September 2000. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Comparative residencies in Wallasey with 100 year plus lease were valued around £250,400. The mid-range amount of ground rent was £65 invoiced yearly. The lease ran out on 13 April 2090. Given that there were 64 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 plus fees.