The nearer a residential lease in West Derby nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, over 99 years to run then this decrease may be negligible however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner rather than later. Most flat owners in West Derby will meet the qualifying criteria; that being said a conveyancer will be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in West Derby with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| TSB | |
| Royal Bank of Scotland |
Engaging our service will provide you better control over the value of your West Derby leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Harrison was the the leasehold proprietor of a studio apartment in West Derby on the market with a lease of just over 61 years unexpired. Harrison on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Harrison to invoke his statutory right. Harrison procured expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
In 2014 we were called by Mr and Mrs. L Nelson who, having took over the lease of a ground floor apartment in West Derby in April 2000. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Identical properties in West Derby with 100 year plus lease were in the region of £191,400. The mid-range ground rent payable was £55 invoiced every twelve months. The lease expired on 11 April 2080. Having 54 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £34,200 and £39,600 plus expenses.
In 2013 we were phoned by Mr and Mrs. T Moore who, having purchased a ground floor flat in West Derby in June 2004. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable residencies in West Derby with an extended lease were valued around £295,000. The average ground rent payable was £45 collected every twelve months. The lease finished on 11 March 2100. Having 74 years unexpired we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.