The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Liverpool can extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Liverpool lease extension. Putting off the costs today simply escalates the price you will eventually be required to pay to extend the lease.
Leasehold premises in Liverpool with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Liverpool 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 conveyancing solicitor we work with provide it.
Off the back of protracted discussions with the freeholder of her first floor flat in Liverpool, Kayleigh initiated the lease extension process just as the lease was approaching the crucial 80-year deadline. The legal work completed in January 2011. The landlord’s costs were kept to an absolute minimum.
In 2009 we were approached by Mr V Lefèvre who, having took over the lease of a garden apartment in Liverpool in August 1995. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Identical flats in Liverpool with an extended lease were in the region of £179,200. The mid-range amount of ground rent was £55 billed per annum. The lease ran out in 2076. Considering the 51 years left we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including costs.
Mr and Mrs. O Wright completed a basement apartment in Liverpool in March 2004. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparable homes in Liverpool with an extended lease were in the region of £285,000. The average amount of ground rent was £45 invoiced per annum. The lease terminated in 2096. Given that there were 71 years left we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.