Walton Merseyside leases on residential deteriorating in value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Walton Merseyside will mostly qualify for a lease extension; however a solicitor will check your eligibility. In some situations you may not be entitled. There are prescribed deadlines and steps to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Walton Merseyside with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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 conveyancing solicitors that we work with undertake Walton Merseyside 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 lawyer we work with provide it.
In the wake of eight months of protracted negotiations with the freeholder of her ground floor flat in Walton Merseyside, Jodie commenced the lease extension process as the 80 year deadline was swiftly coming. The legal work was concluded in August 2007. The landlord’s fees were negotiated to slightly above 550 pounds.
Mrs Stephanie Stewart acquired a recently refurbished flat in Walton Merseyside in January 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Similar premises in Walton Merseyside with an extended lease were worth £220,400. The mid-range ground rent payable was £45 invoiced monthly. The lease expiry date was on 26 November 2089. Given that there were 64 years remaining we approximated the compensation to the landlord to extend the lease to be between £15,200 and £17,600 not including costs.
In 2012 we were contacted by Dr Oliver Vincent who, having acquired a recently refurbished flat in Walton Merseyside in August 1997. We are asked if we could estimate the premium would be to extend the lease by 90 years. Identical properties in Walton Merseyside with a long lease were worth £270,000. The mid-range ground rent payable was £55 billed every twelve months. The lease finished in 2100. Having 75 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.