When it comes to residential leasehold premises in Walton on the Naze, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Residents in Walton on the Naze with a lease drawing near to 81 years unexpired should seriously consider extending it sooner than later. When a lease has below 80 years remaining, under the relevant statute the freeholder is entitled to calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Walton on the Naze with in excess of 100 years left 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
The lawyers that we work with procure Walton on the Naze lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Subsequent to protracted correspondence with the freeholder of her two bedroom apartment in Walton on the Naze, Samantha commenced the lease extension process just as the lease was approaching the all-important eighty-year deadline. The legal work was finalised in July 2009. The freeholder’s fees were negotiated to a tad over 450 GBP.
Last Spring we were approach by Dr M Brown , who completed a first floor flat in Walton on the Naze in January 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Similar properties in Walton on the Naze with an extended lease were worth £267,600. The mid-range ground rent payable was £65 invoiced annually. The lease ran out on 1 April 2092. Having 67 years outstanding we approximated the premium to the landlord for the lease extension to be within £14,300 and £16,400 exclusive of fees.
Last Winter we were approach by Dr Nicole Michel , who completed a ground floor apartment in Walton on the Naze in March 2000. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparable properties in Walton on the Naze with 100 year plus lease were worth £206,200. The mid-range ground rent payable was £60 billed every twelve months. The lease ran out in 2081. Taking into account 56 years left we calculated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 not including professional charges.