Walton on the Naze leases on domestic properties are gradually losing value. if your lease has approximately 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the existing lease drops under 80 years - otherwise a higher premium will be payable. Flat owners in Walton on the Naze will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm your eligibility. In some circumstances you may not qualify. There are prescribed deadlines and steps to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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; |
| Birmingham Midshires | 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 get guidance from a conveyancing solicitor 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 in-depth market knowledge 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.
Half a year ago Theo, started to get near to the eighty-year mark with the lease on his leasehold flat in Walton on the Naze. Having purchased his flat 19 years previously, the unexpired term was of minimal bearing. Luckily, it dawned on him that he would soon be paying way over the odds for a lease extension. Theo extended the lease just in the nick of time last July. Theo and the freeholder ultimately agreed on an amount of £5,500 . If the lease had dropped lower than 80 years, the figure would have increased by at least £1,125.
In 2013 we were called by Mr and Mrs. T Garcia who, having owned a ground floor apartment in Walton on the Naze in August 2009. The question was if we could estimate the price would be for a 90 year extension to my lease. Comparable flats in Walton on the Naze with an extended lease were worth £216,000. The mid-range ground rent payable was £60 collected annually. The lease finished on 16 April 2084. Having 58 years remaining we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including expenses.
In 2012 we were called by Mr and Mrs. A Parker who, having moved into a first floor flat in Walton on the Naze in June 2004. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Comparative flats in Walton on the Naze with an extended lease were in the region of £205,000. The mid-range amount of ground rent was £50 billed annually. The lease expired in 2104. Taking into account 78 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £7,600 and £8,800 plus fees.