With a residential leasehold premises in Wirral, you are actually purchasing a right to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially once there are less than 80 years remaining. Anyone in Wirral with a lease nearing 81 years unexpired should seriously think of extending it without delay. Once a lease has below 80 years left, under the current Act the freeholder can calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Wirral can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Wirral lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful discussions with the freeholder of her first floor apartment in Wirral, Katie started the lease extension process just as the lease was nearing the critical eighty-year threshold. The transaction was finalised in April 2013. The freeholder’s fees were restricted to below 700 pounds.
Ms O Clarke bought a studio flat in Wirral in April 1998. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Wirral with an extended lease were in the region of £242,600. The mid-range amount of ground rent was £45 billed annually. The lease termination date was on 16 April 2093. Taking into account 67 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of legals.
Mr and Mrs. A Baker moved into a one bedroom apartment in Wirral in February 2001. We are asked if we could approximate the price would be to extend the lease by an additional years. Comparable flats in Wirral with 100 year plus lease were worth £280,000. The average amount of ground rent was £55 billed every twelve months. The lease finished in 2104. Given that there were 78 years outstanding we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including fees.