West Derby leases on residential properties are gradually losing value. Where your lease has about 90 years left, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in West Derby will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some situations you may not qualify. There are also strict timetables and procedures to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in West Derby with over 100 years remaining on the lease are often 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 buying the freehold unless savings on ground rent and estate charges merit 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure West Derby 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.
Last October Finn, started to get close to the eighty-year mark with the lease on his first floor apartment in West Derby. In buying his property two decades ago, the unexpired term was of little interest. by good luck, he recognised he would imminently be paying an inflated amount for Extending the lease. Finn arranged for a lease extension just under the wire last July. Finn and the freeholder eventually agreed on an amount of £5,000 . If he had missed the deadline, the price would have gone up by a minimum £1,150.
Dr C Rogers took over the lease of a studio flat in West Derby in July 2001. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparative residencies in West Derby with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £65 invoiced quarterly. The lease elapsed in 2094. Having 68 years unexpired we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including costs.
Mr and Mrs. A Vincent took over the lease of a recently refurbished apartment in West Derby in October 2012. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Identical homes in West Derby with an extended lease were worth £208,600. The mid-range amount of ground rent was £60 collected yearly. The lease ran out on 9 July 2083. Taking into account 57 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of fees.