Walton on the Naze Lease Extension - Free Consultation

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Why you should commence your Walton on the Naze lease extension

Why you should commence your Walton on the Naze lease extension today:

Increase your lease and increase your Walton on the Naze property value

There is no doubt about it a leasehold flat or house in Walton on the Naze is a wasting asset as a result of the diminishing lease term. If the lease has, in excess of 100 years remaining then this decrease may be negligible however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner than later. Many flat owners in Walton on the Naze will qualify for this right; nevertheless a lawyer should be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.

Walton on the Naze property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.

Lenders will not loan monies with a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past banks were content with twenty years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

Lender Requirement
Chelsea 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.
Halifax Minimum 70 years from the date of the mortgage.
Leeds Building Society 85 years remaining from the start 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.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.

Get in touch with one of our Walton on the Naze lease extension solicitors or enfranchisement solicitors

Engaging our service gives you increased control over the value of your Walton on the Naze leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Walton on the Naze Lease Extension Case Studies:

Milo, Walton on the Naze, Essex

In 2014 Milo, came dangerously near to the eighty-year mark with the lease on his garden flat in Walton on the Naze. In buying his home two decades ago, the lease term was of no relevance. Luckily, he became aware that he needed to take action soon on a lease extension. Milo extended the lease just ahead of time last April. Milo and the landlord who owned the flat above eventually settled on sum of £5,500 . If the lease had gone below eighty years, the price would have gone up by at least £875.

Walton on the Naze case:

Last Spring we were e-mailed by Mr and Mrs. B King , who acquired a one bedroom apartment in Walton on the Naze in August 2007. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Similar properties in Walton on the Naze with an extended lease were in the region of £216,000. The mid-range amount of ground rent was £60 billed quarterly. The lease ran out in 2083. Having 58 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of professional charges.

Walton on the Naze case:

Mr and Mrs. D King was assigned a lease of a one bedroom apartment in Walton on the Naze in September 2001. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Comparative homes in Walton on the Naze with an extended lease were valued about £205,000. The mid-range ground rent payable was £50 invoiced monthly. The lease ran out in 2103. Considering the 78 years left we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including legals.