The re-sale value of a leasehold property in West Kirby is impacted by how many years the lease has remaining. If it is close to or fewer than eighty years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is ideal to start the lease extension process when a lease still has 82 years remaining so that formalities can be addressed prior to the 80 year mark. Leasehold Reform legislation entitles West Kirby qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Lease extensions in West Kirby can be a difficult process. We recommend you obtain guidance 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 a wealth of experience procuring West Kirby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Jayden, started to get near to the 80-year mark with the lease on his purpose- built apartment in West Kirby. In buying his property 18 years previously, the unexpired term was of little significance. Thankfully, he recognised he would imminently be paying an inflated amount for a lease extension. Jayden extended the lease just under the wire in September. Jayden and the landlord ultimately settled on the final figure of £5,000 . If the lease had dropped below 80 years, the sum would have escalated by at least £850.
Mr and Mrs. H Stewart acquired a garden flat in West Kirby in August 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Identical residencies in West Kirby with an extended lease were in the region of £250,400. The average ground rent payable was £65 invoiced yearly. The lease terminated in 2089. Given that there were 64 years remaining we calculated the premium to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of costs.
Mr C Thomas completed a ground floor flat in West Kirby in March 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable premises in West Kirby with a long lease were valued about £184,000. The average amount of ground rent was £55 billed per annum. The lease finished on 9 October 2078. Given that there were 53 years as a residual term we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus expenses.