The market value of Huyton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the unexpired lease term is below than 80 years
Leasehold premises in Huyton with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Huyton 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.
Two years ago Rory, came dangerously near to the eighty-year mark with the lease on his purpose- built apartment in Huyton. In buying his home 19 years previously, the lease term was of minimal significance. Thankfully, it dawned on him that he needed to take action soon on Extending the lease. Rory arranged for a lease extension just in the nick of time in April. Rory and the freeholder via the managing agents in the end agreed on a premium of £6,000 . If he failed to meet the deadline, the sum would have escalated by a minimum £1,075.
Last Autumn we were called by Mr and Mrs. J David , who bought a newly refurbished apartment in Huyton in November 2010. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Identical premises in Huyton with 100 year plus lease were in the region of £223,400. The average ground rent payable was £60 invoiced yearly. The lease terminated on 20 March 2085. Given that there were 59 years unexpired we calculated the premium to the landlord for the lease extension to be within £27,600 and £31,800 plus professional charges.
Dr K Thomas moved into a one bedroom flat in Huyton in July 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Comparative homes in Huyton with an extended lease were valued about £210,000. The mid-range ground rent payable was £50 invoiced yearly. The lease terminated in 2105. Given that there were 79 years left we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.