Chances are that if you own a flat in Wirral you actually own a long leasehold interest over your property
Leasehold residencies in Wirral with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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. |
The conveyancing solicitors that we work with handle 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 conveyancing solicitor we work with provide it.
Half a year ago Sam, came perilously close to the eighty-year threshold with the lease on his one bedroom flat in Wirral. Having bought his flat two decades ago, the unexpired term was of little significance. Thankfully, he realised he would imminently be paying way over the odds for a lease extension. Sam arranged for a lease extension at the eleventh hour last April. Sam and the freeholder via the management company in the end settled on sum of £5,000 . If he failed to meet the deadline, the amount would have gone up by a minimum £950.
In 2012 we were contacted by Mr and Mrs. R Rivera who, having completed a studio flat in Wirral in May 1995. The question was if we could approximate the price would be to prolong the lease by an additional years. Comparative premises in Wirral with a long lease were worth £227,800. The mid-range amount of ground rent was £45 billed yearly. The lease terminated in 2090. Considering the 65 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including professional charges.
In 2011 we were contacted by Mr and Mrs. N Richardson who, having took over the lease of a garden apartment in Wirral in October 2008. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Similar properties in Wirral with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £55 collected quarterly. The lease ended in 2101. Taking into account 76 years as a residual term we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.