The re-sale value of a leasehold property in Walkden depends on how many years the lease has left to run. If it is close to or fewer than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that formalities can be finalised ahead of the 80 year threshold. Current legislation enables Walkden qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of ninety years. The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Walkden with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Yorkshire Building Society |
The lawyers that we work with handle Walkden 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.
Harvey owned a studio apartment in Walkden on the market with a lease of fraction over 59 years left. Harvey informally approached his landlord a well known Bristol-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 per annum. Ordinarily, ground rent would not be due on a lease extension were Harvey to exercise his statutory right. Harvey obtained expert advice and secured an acceptable resolution informally and readily saleable.
Mr and Mrs. M Scott acquired a basement flat in Walkden in July 2012. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Similar premises in Walkden with 100 year plus lease were in the region of £290,000. The mid-range ground rent payable was £60 invoiced yearly. The lease end date was on 12 April 2106. Considering the 80 years unexpired we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including fees.
Last Summer we were called by Mr and Mrs. E Garcia , who took over the lease of a first floor apartment in Walkden in October 1999. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparable properties in Walkden with a long lease were in the region of £200,800. The average amount of ground rent was £65 billed annually. The lease expired in 2086. Taking into account 60 years as a residual term we calculated the premium to the landlord to extend the lease to be between £20,900 and £24,200 not including legals.