Walton on the Naze leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Walton on the Naze residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Walton on the Naze you really ought to investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Walton on the Naze with more than 100 years remaining 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 home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Irrespective of whether you are a tenant or a landlord in Walton on the Naze,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Walton on the Naze valuers.
Oliver owned a conversion flat in Walton on the Naze being marketed with a lease of a few days over 61 years remaining. Oliver on an informal basis spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be due on a lease extension were Oliver to invoke his statutory right. Oliver procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last Autumn we were approach by Ms K Clarke , who purchased a recently refurbished flat in Walton on the Naze in November 2002. The question was if we could approximate the premium would be to prolong the lease by 90 years. Similar homes in Walton on the Naze with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £45 invoiced monthly. The lease lapsed on 15 May 2096. Considering the 71 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.
In 2014 we were phoned by Dr Seth Wright who, having owned a recently refurbished apartment in Walton on the Naze in August 2006. The question was if we could approximate the price could be to extend the lease by ninety years. Similar flats in Walton on the Naze with 100 year plus lease were in the region of £230,800. The average ground rent payable was £60 billed monthly. The lease ran out in 2085. Considering the 60 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £24,700 and £28,600 exclusive of fees.