Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Wallasey. Inevitably, the term of lease remaining shortens as time goes by. This is often overlooked and only becomes a problem when the residence has to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Wallasey have the right to extend the lease for an additional 90 years under legislation. You should give due deliberation before putting off your Wallasey lease extension. Putting off that expense now likely increases the price you will eventually incur to extend your lease
Leasehold premises in Wallasey with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Wallasey can be a difficult process. We recommend you secure guidance from a conveyancing solicitor 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 a wealth of experience dealing with Wallasey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Riley owned a studio flat in Wallasey being sold with a lease of just over 61 years left. Riley informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be due on a lease extension were Riley to exercise his statutory right. Riley procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2014 we were e-mailed by Mr John Díaz who, having purchased a ground floor flat in Wallasey in March 2007. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Similar homes in Wallasey with an extended lease were worth £200,000. The average amount of ground rent was £50 billed annually. The lease finished on 6 September 2104. Taking into account 78 years left we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.
Last Christmas we were contacted by Dr Jennifer Lewis , who bought a first floor apartment in Wallasey in August 1999. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Comparable flats in Wallasey with an extended lease were worth £267,600. The mid-range ground rent payable was £65 collected annually. The lease ended in 2093. Considering the 67 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 not including professional charges.