Wirral leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Wirral enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Wirral you should see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Wirral can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in this area.
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 Wirral lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Jake, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Wirral. Having purchased his home twenty years previously, the lease term was of minimal significance. As luck would have it, he became aware that he would imminently be paying way over the odds for Extending the lease. Jake arranged for a lease extension just in the nick of time in July. Jake and the freeholder via the management company ultimately settled on an amount of £5,500 . If he failed to meet the deadline, the figure would have escalated by a minimum £1,125.
Last July we were called by Mr Jasper King , who moved into a one bedroom apartment in Wirral in November 2010. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar homes in Wirral with an extended lease were in the region of £260,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease termination date was in 2097. Having 72 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.
Last Spring we were approach by Mr and Mrs. V Martínez , who took over the lease of a one bedroom flat in Wirral in April 2012. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Comparable flats in Wirral with an extended lease were valued about £256,600. The mid-range amount of ground rent was £60 invoiced yearly. The lease ended on 20 July 2077. Considering the 52 years outstanding we calculated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 not including costs.