Wirral leases on residential properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Wirral will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some situations you may not be entitled. There are prescribed deadlines and formalities to comply with once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally accepted 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 remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Regardless of whether you are a tenant or a landlord in Wirral,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wirral valuers.
In recent months Ollie, started to get near to the eighty-year mark with the lease on his ground floor flat in Wirral. Having bought his flat twenty years previously, the lease term was of minimal interest. by good luck, he became aware that he would imminently be paying an inflated amount for Extending the lease. Ollie arranged for a lease extension at the eleventh hour last June. Ollie and the landlord who owned the flat above ultimately settled on sum of £6,000 . If he had missed the deadline, the figure would have become more costly by a minimum £1,050.
Last Christmas we were approach by Mr B Norbert , who bought a newly refurbished flat in Wirral in August 2009. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Comparable properties in Wirral with a long lease were in the region of £264,000. The mid-range amount of ground rent was £60 collected yearly. The lease end date was in 2078. Taking into account 53 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 not including fees.
In 2009 we were called by Mr and Mrs. K Nguyen who, having bought a basement flat in Wirral in July 2010. We are asked if we could estimate the price would be for a ninety year lease extension. Similar homes in Wirral with a long lease were worth £225,400. The average ground rent payable was £45 invoiced quarterly. The lease finished on 14 March 2089. Taking into account 64 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 exclusive of fees.