The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Walkden can extend the lease for an additional 90 years under statute. Please think carefully before delaying your Walkden lease extension. Postponing that expense today simply increases the amount you will ultimately have to pay to extend the lease.
Leasehold properties in Walkden with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 obtain guidance from a conveyancer and surveyor 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.
Off the back of lengthy correspondence with the freeholder of her two bedroom flat in Walkden, Gemma started the lease extension process as the 80 year threshold was swiftly advancing. The transaction was concluded in July 2013. The landlord’s costs were negotiated to about 550 GBP.
Last Summer we were contacted by Mr and Mrs. D Morgan , who purchased a basement flat in Walkden in August 1995. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Comparative properties in Walkden with 100 year plus lease were in the region of £270,000. The mid-range amount of ground rent was £55 invoiced annually. The lease expired in 2101. Considering the 76 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
Last Summer we were e-mailed by Mr and Mrs. D Fournier , who owned a basement apartment in Walkden in May 2008. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Identical flats in Walkden with 100 year plus lease were valued around £176,200. The average amount of ground rent was £65 invoiced quarterly. The lease lapsed in 2081. Taking into account 56 years remaining we estimated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 plus fees.