On the balance of probabilities if you own a flat in Walkden you actually own a long leasehold interest over your property
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 get professional help from a conveyancing solicitor and valuer with experience in this area.
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.
Teddy owned a 2 bedroom apartment in Walkden on the market with a lease of just over 61 years remaining. Teddy on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Teddy to exercise his statutory right. Teddy procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Ms Molly Roux was assigned a lease of a first floor flat in Walkden in March 2004. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Comparative properties in Walkden with a long lease were valued about £200,800. The average ground rent payable was £65 billed every twelve months. The lease ended in 2086. Considering the 60 years remaining we calculated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 not including fees.
Last Winter we were approach by Mr and Mrs. C Wood , who was assigned a lease of a one bedroom flat in Walkden in May 2009. We are asked if we could estimate the price could be to prolong the lease by ninety years. Comparable properties in Walkden with 100 year plus lease were in the region of £260,000. The average amount of ground rent was £50 billed per annum. The lease ended in 2097. Given that there were 71 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.