The closer a residential lease in West Derby nears to zero years unexpired, the more it reduces the value of the property. If the lease has, in excess of one hundred years remaining then this decrease may be negligible however there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease without delay. Many flat owners in West Derby will qualify for this right; that being said a lawyer can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in West Derby with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in West Derby can be a difficult process. We recommend you procure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring West Derby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
16 months ago Ali, came critically near to the 80-year threshold with the lease on his purpose- built flat in West Derby. In buying his home 18 years ago, the lease term was of minimal significance. Luckily, he became aware that he would imminently be paying an inflated amount for a lease extension. Ali arranged for a lease extension just under the wire last July. Ali and the freeholder in the end agreed on sum of £6,000 . If he not met the deadline, the price would have escalated by at least £925.
Last year we were contacted by Mr and Mrs. O Moreau , who completed a recently refurbished flat in West Derby in September 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Similar premises in West Derby with 100 year plus lease were valued around £206,200. The average ground rent payable was £55 invoiced per annum. The lease concluded in 2082. Given that there were 56 years left we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus legals.
In 2010 we were e-mailed by Dr Natasha Stewart who, having completed a first floor flat in West Derby in October 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by an additional years. Identical premises in West Derby with a long lease were valued around £300,000. The mid-range amount of ground rent was £50 collected quarterly. The lease lapsed on 22 May 2102. Taking into account 76 years outstanding we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.