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 considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 secure guidance from a lawyer and valuer with experience in lease extensions.
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.
Max was the the leasehold owner of a studio flat in Walkden on the market with a lease of just over sixty years remaining. Max informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Max to exercise his statutory right. Max procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
In 2012 we were contacted by Ms T Campbell who, having moved into a studio apartment in Walkden in September 2006. The question was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Identical flats in Walkden with 100 year plus lease were worth £265,000. The average amount of ground rent was £50 collected monthly. The lease finished on 26 November 2099. Having 73 years outstanding we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.
Mr and Mrs. T Patel took over the lease of a studio flat in Walkden in March 1995. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Similar properties in Walkden with a long lease were valued about £264,000. The mid-range ground rent payable was £60 billed quarterly. The lease terminated in 2079. Given that there were 53 years unexpired we approximated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 not including expenses.