There is no doubt about it a leasehold flat or house in Walkden is a wasting asset as a result of the diminishing lease term. If the residual term has, more than 125 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner as opposed to later. Many flat owners in Walkden will qualify for this right; nevertheless a conveyancing solicitor can advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Walkden with in excess of one hundred years left on the lease are often referred to as ‘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 buying the freehold unless savings on ground rent and service charges justify 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Walkden can be a difficult process. We recommend you procure professional help 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 in-depth market knowledge dealing with Walkden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Logan, started to get near to the 80-year threshold with the lease on his ground floor flat in Walkden. Having bought his property twenty years ago, the lease term was of no significance. by good luck, he became aware that he would soon be paying way over the odds for Extending the lease. Logan arranged for a lease extension just under the wire in June. Logan and the freeholder subsequently settled on an amount of £5,500 . If he had missed the deadline, the sum would have increased by a minimum £1,000.
In 2013 we were phoned by Dr F Moore who, having owned a basement apartment in Walkden in March 1996. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparative homes in Walkden with an extended lease were in the region of £255,000. The average amount of ground rent was £50 billed per annum. The lease expiry date was in 2097. Having 71 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.
Mrs I Martinez bought a purpose-built apartment in Walkden in June 1996. The question was if we could estimate the premium would likely be to extend the lease by an additional years. Comparable properties in Walkden with 100 year plus lease were valued about £246,800. The mid-range amount of ground rent was £60 billed annually. The lease terminated in 2076. Having 50 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 plus legals.