The 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 escalate substantially once the unexpired lease term is below than 80 years
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
Regardless of whether you are a tenant or a landlord in Wallasey,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wallasey valuers.
Trailing unsuccessful correspondence with the landlord of her garden apartment in Wallasey, Louise started the lease extension process just as her lease was nearing the crucial 80-year mark. The transaction completed in July 2011. The landlord’s costs were restricted to about 550 pounds.
Mr and Mrs. K Robinson took over the lease of a studio apartment in Wallasey in April 2010. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Comparative flats in Wallasey with an extended lease were in the region of £233,200. The mid-range amount of ground rent was £60 collected per annum. The lease finished on 15 August 2086. Considering the 61 years unexpired we estimated the premium to the freeholder to extend the lease to be between £22,800 and £26,400 not including expenses.
In 2013 we were e-mailed by Mrs Isabella Parker who, having moved into a newly refurbished apartment in Wallasey in July 2007. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Comparable premises in Wallasey with a long lease were worth £166,800. The average ground rent payable was £50 billed yearly. The lease lapsed on 3 June 2075. Taking into account 50 years remaining we approximated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 plus professional charges.