Unfortunately that a Walton on the Naze residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Walton on the Naze property market.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher premium will be payable. Most leasehold owners in Walton on the Naze will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold properties in Walton on the Naze with more than one hundred years unexpired on the lease are sometimes 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 purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Walton on the Naze can be a difficult process. We recommend you procure professional help from a lawyer 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 a wealth of experience dealing with Walton on the Naze lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy negotiations with the landlord of her ground floor flat in Walton on the Naze, Rosie started the lease extension process as the eighty year threshold was swiftly nearing. The transaction was finalised in November 2014. The landlord’s costs were kept to an absolute minimum.
Mr E Harris acquired a studio flat in Walton on the Naze in September 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Identical properties in Walton on the Naze with 100 year plus lease were worth £210,000. The mid-range amount of ground rent was £50 collected yearly. The lease elapsed on 28 February 2106. Considering the 80 years remaining we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.
Last year we were e-mailed by Dr Isabelle Bennett , who bought a recently refurbished apartment in Walton on the Naze in November 2005. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Similar premises in Walton on the Naze with an extended lease were valued around £280,000. The average ground rent payable was £45 billed annually. The lease finished on 4 July 2095. Considering the 69 years unexpired we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus fees.