The value of Wallasey leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase substantially once the unexpired lease term is less than 80 years
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service gives you increased control over the value of your Wallasey leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy discussions with the freeholder of her basement apartment in Wallasey, Kirsty started the lease extension process just as the lease was nearing the crucial eighty-year threshold. The legal work was finalised in September 2011. The freeholder’s costs were restricted to about 550 pounds.
In 2013 we were approached by Dr A Brown who, having acquired a first floor apartment in Wallasey in May 2012. We are asked if we could estimate the premium would be to extend the lease by 90 years. Comparative homes in Wallasey with a long lease were in the region of £198,800. The mid-range amount of ground rent was £55 billed per annum. The lease elapsed on 14 June 2080. Given that there were 55 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 plus professional charges.
Mrs Nicole Jackson moved into a purpose-built flat in Wallasey in May 2007. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable premises in Wallasey with a long lease were in the region of £295,000. The mid-range ground rent payable was £45 billed per annum. The lease elapsed in 2100. Given that there were 75 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.