As the length of the unexpired term of a Wavertree residential lease diminished so does its value and therefore the value of your property. If the residual term has, over 99 years to run then this decrease may be fractional that being said there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner as opposed to later. Most flat owners in Wavertree will meet the qualifying criteria; that being said a conveyancing solicitor can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Wavertree with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you increased control over the value of your Wavertree leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Samuel, started to get near to the 80-year mark with the lease on his one bedroom apartment in Wavertree. Having purchased his property two decades ago, the unexpired term was of little significance. As luck would have it, he realised he would imminently be paying way over the odds for a lease extension. Samuel was able to extend his lease at the eleventh hour last April. Samuel and the freeholder via the management company in the end agreed on sum of £5,500 . If the lease had dropped lower than 80 years, the sum would have gone up by a minimum £1,125.
Dr W Lambert purchased a one bedroom flat in Wavertree in October 2007. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparative premises in Wavertree with 100 year plus lease were in the region of £265,200. The average ground rent payable was £65 invoiced every twelve months. The lease ran out on 7 March 2091. Taking into account 66 years left we calculated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 plus fees.
Last Spring we were e-mailed by Mr Rory González , who purchased a purpose-built apartment in Wavertree in October 1999. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparable properties in Wavertree with an extended lease were worth £198,800. The average ground rent payable was £55 billed annually. The lease lapsed on 18 February 2080. Taking into account 55 years unexpired we estimated the premium to the landlord for the lease extension to be between £33,300 and £38,400 not including fees.