The closer a domestic lease in Walkden gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, beyond one hundred years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending without delay. Many flat owners in Walkden will qualify for this right; that being said a conveyancer will be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
Lease extensions in Walkden can be a difficult process. We recommend you procure 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 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.
Matthew was the the leasehold owner of a 2 bedroom flat in Walkden on the market with a lease of fraction over 72 years left. Matthew on an informal basis spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Matthew to exercise his statutory right. Matthew procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2013 we were contacted by Mr Jonathan Morris who, having purchased a first floor flat in Walkden in March 2001. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical properties in Walkden with 100 year plus lease were in the region of £225,400. The average ground rent payable was £45 billed per annum. The lease elapsed in 2090. Given that there were 64 years unexpired we estimated the premium to the landlord for the lease extension to be within £15,200 and £17,600 not including legals.
Mr and Mrs. E Kelly acquired a purpose-built flat in Walkden in August 1996. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable flats in Walkden with an extended lease were valued around £270,000. The average ground rent payable was £55 billed yearly. The lease came to a finish on 17 January 2101. Considering the 75 years remaining we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.