Unfortunately that a Walkden residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Walkden property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher amount will be due. Most flat owners in Walkden will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the process.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Birmingham Midshires | |
| Halifax | |
| Royal Bank of Scotland |
Lease extensions in Walkden can be a difficult process. We recommend you procure professional help from a conveyancer 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.
16 months ago Dylan, came dangerously close to the 80-year mark with the lease on his first floor flat in Walkden. Having purchased his flat two decades ago, the lease term was of little concern. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Dylan was able to extend his lease just ahead of time in September. Dylan and the freeholder via the management company ultimately agreed on a premium of £5,500 . If the lease had fallen lower than 80 years, the figure would have become more costly by a minimum £1,050.
In 2009 we were e-mailed by Ms Anna Davis who, having took over the lease of a recently refurbished flat in Walkden in August 1997. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Similar homes in Walkden with a long lease were valued around £260,000. The average ground rent payable was £50 invoiced per annum. The lease elapsed on 4 September 2098. Given that there were 72 years outstanding we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
Mr Muhammad Brown acquired a studio flat in Walkden in January 2006. The question was if we could approximate the price would be to prolong the lease by a further 90 years. Similar flats in Walkden with an extended lease were in the region of £261,600. The mid-range amount of ground rent was £60 collected per annum. The lease lapsed in 2078. Considering the 52 years unexpired we estimated the compensation to the landlord to extend the lease to be between £39,000 and £45,000 exclusive of legals.