The re-sale value of a leasehold property in Walkden is impacted by how long the lease has remaining. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be concluded in advance of the eighty year mark. Current legislation entitles Walkden qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Walkden with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
The conveyancing solicitors that we work with procure 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.
Last Autumn Luca, came dangerously near to the 80-year threshold with the lease on his one bedroom apartment in Walkden. In buying his property twenty years previously, the lease term was of little significance. by good luck, he noticed he needed to take steps soon on Extending the lease. Luca extended the lease just in the nick of time last March. Luca and the freeholder via the managing agents subsequently settled on sum of £5,500 . If the lease had descended below eighty years, the amount would have increased by at least £1,025.
In 2013 we were called by Mr and Mrs. L Alexander who, having acquired a basement flat in Walkden in May 2004. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical flats in Walkden with 100 year plus lease were in the region of £245,000. The average ground rent payable was £45 billed quarterly. The lease finished in 2093. Considering the 68 years outstanding we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.
Dr C Gómez completed a ground floor apartment in Walkden in April 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Walkden with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £55 collected yearly. The lease elapsed in 2104. Having 79 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of costs.