It’s a harsh truth that a West Kirby residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the West Kirby property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term falls under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in West Kirby will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold premises in West Kirby with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake West Kirby 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.
Off the back of protracted discussions with the freeholder of her leasehold apartment in West Kirby, Nicole commenced the lease extension process as the 80 year threshold was rapidly coming. The transaction was finalised in June 2005. The freeholder’s fees were restricted to slightly above 600 pounds.
In 2011 we were contacted by Ms Charlotte Lefebvre who, having bought a one bedroom apartment in West Kirby in July 2004. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Similar properties in West Kirby with 100 year plus lease were worth £267,600. The average ground rent payable was £65 invoiced annually. The lease came to a finish on 28 June 2093. Taking into account 67 years outstanding we calculated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 not including expenses.
In 2009 we were e-mailed by Dr Ali Williams who, having acquired a garden flat in West Kirby in October 2006. The dilemma was if we could approximate the premium could be to prolong the lease by 90 years. Identical homes in West Kirby with a long lease were in the region of £206,200. The average amount of ground rent was £55 billed per annum. The lease ended on 27 May 2082. Having 56 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including costs.