Unfortunately that a West Kirby residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the West Kirby property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term falls below eighty 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 extra 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 conveyancing solicitor should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the process.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | 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 75 years plus the term of the mortgage at the outset of the mortgage. |
Retaining our service gives you better control over the value of your West Kirby leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful negotiations with the freeholder of her basement apartment in West Kirby, Melissa started the lease extension process as the eighty year threshold was rapidly advancing. The legal work was concluded in November 2005. The landlord’s costs were kept to an absolute minimum.
Last Summer we were called by Ms F Patel , who bought a basement apartment in West Kirby in May 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Comparable properties in West Kirby with an extended lease were valued about £166,800. The average ground rent payable was £50 billed annually. The lease ran out on 28 January 2076. Given that there were 50 years remaining we estimated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of costs.
Last September we were called by Mr and Mrs. L Johnson , who was assigned a lease of a ground floor flat in West Kirby in October 1996. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Comparative homes in West Kirby with an extended lease were worth £280,000. The mid-range ground rent payable was £45 collected every twelve months. The lease ran out in 2096. Having 70 years remaining we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.