The value of Walkden 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 remaining term is below than eighty years
Leasehold properties in Walkden with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 Walkden can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor 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 procuring Walkden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Eliot owned a high value flat in Walkden being marketed with a lease of fraction over 59 years unexpired. Eliot on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be payable on a lease extension were Eliot to exercise his statutory right. Eliot obtained expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Dr Jessica Brooks took over the lease of a ground floor apartment in Walkden in August 1995. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparative flats in Walkden with an extended lease were valued around £256,600. The average ground rent payable was £60 billed per annum. The lease ran out in 2077. Considering the 52 years outstanding we calculated the compensation to the landlord to extend the lease to be between £41,800 and £48,400 plus legals.
Mr and Mrs. Y Lefebvre moved into a one bedroom apartment in Walkden in June 2012. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Similar properties in Walkden with an extended lease were worth £215,600. The mid-range ground rent payable was £45 billed annually. The lease finished in 2087. Taking into account 62 years outstanding we calculated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 exclusive of expenses.