Top reasons for Wirral lease extension

Main reasons to commence your Wirral lease extension today:

Increase your lease and increase your Wirral property value

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Wirral. Inevitably, the period of lease left reduces as time goes by. This is often overlooked and only becomes a problem when the flat or house has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Wirral have the right to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. You should give due attention before delaying your Wirral lease extension. Putting off that expense now simply increases the price you will ultimately incur to extend your lease

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Lenders will not loan monies with a short lease

Most mortgage lenders have constrained their lending criteria in recent years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against property with shorter lease terms, particularly under 75 years as they are deemed to be insufficient security.

Get in touch with one of our Wirral lease extension solicitors or enfranchisement solicitors

The conveyancing solicitors that we work with undertake Wirral 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.

Wirral Lease Extension Example Cases:

Jake, Wirral, Merseyside,

Jake was the the leasehold proprietor of a conversion flat in Wirral on the market with a lease of a little over 59 years left. Jake informally approached his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jake to exercise his statutory right. Jake obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.

Wirral case:

Ms R Wood was assigned a lease of a newly refurbished flat in Wirral in May 2008. We are asked if we could approximate the premium would be for a ninety year lease extension. Comparative properties in Wirral with an extended lease were valued around £210,600. The average amount of ground rent was £45 invoiced quarterly. The lease concluded in 2088. Taking into account 62 years left we estimated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus expenses.

Wirral case:

Last year we were called by Dr Georgia Phillips , who completed a ground floor apartment in Wirral in September 2007. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparative premises in Wirral with an extended lease were valued about £265,000. The average amount of ground rent was £50 collected monthly. The lease finished on 7 October 2099. Having 73 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.