With a long leasehold premises in West Kirby, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are fewer than 80 years remaining. Residents in West Kirby with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. Once the lease term has below 80 years remaining, under the current legislation the freeholder can calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is payable.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you increased control over the value of your West Kirby leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Kai, came perilously near to the eighty-year threshold with the lease on his studio apartment in West Kirby. Having bought his home twenty years previously, the lease term was of minimal importance. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Kai arranged for a lease extension just under the wire last January. Kai and the freeholder subsequently settled on the final figure of £5,000 . If he had missed the deadline, the figure would have increased by at least £875.
Last Christmas we were approach by Mr Aarav Peterson , who completed a studio apartment in West Kirby in April 2010. The question was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparative premises in West Kirby with an extended lease were in the region of £275,000. The average ground rent payable was £45 collected every twelve months. The lease ended in 2095. Given that there were 69 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus professional charges.
Last Winter we were approach by Mrs Lily Adams , who purchased a studio flat in West Kirby in March 1998. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical residencies in West Kirby with a long lease were worth £216,000. The average ground rent payable was £60 billed annually. The lease lapsed in 2084. Having 58 years as a residual term we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including legals.