Chances are that if you own a flat in Wavertree you actually own a long leasehold interest over your property
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Wavertree 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 conveyancer we work with provide it.
Caleb was the the leasehold owner of a high value flat in Wavertree being marketed with a lease of a little over sixty years remaining. Caleb informally spoke with his landlord a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Caleb to exercise his statutory right. Caleb procured expert legal guidance and secured an acceptable deal informally and sell the flat.
Mrs Aimee Adams acquired a recently refurbished apartment in Wavertree in January 2003. The question was if we could approximate the premium would likely be for a 90 year lease extension. Identical flats in Wavertree with a long lease were worth £216,000. The mid-range ground rent payable was £60 billed per annum. The lease came to a finish on 15 August 2084. Having 58 years remaining we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including legals.
Ms Elizabeth Pérez took over the lease of a newly refurbished flat in Wavertree in November 2003. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Similar premises in Wavertree with a long lease were worth £200,000. The mid-range amount of ground rent was £50 billed per annum. The lease concluded in 2104. Given that there were 78 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus professional charges.