Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Walton. Inevitably, the length of lease left reduces as time goes by. This may slip by relatively unnoticed when the residence has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Eligible long lease owners in Walton have the right to extend the lease for an additional 90 years in accordance with statute. You should give careful attention before delaying your Walton lease extension. Holding off the cost now simply increases the price you will eventually incur for a lease extension
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Walton leasehold, as your property will be more valuable and marketable in relation to the lease length should you want 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.
In the wake of eight months of lengthy correspondence with the landlord of her studio apartment in Walton, Jodie initiated the lease extension process as the eighty year deadline was quickly approaching. The legal work was finalised in June 2010. The landlord’s charges were negotiated to under 650 pounds.
Last October we were approach by Mr and Mrs. A Kelly , who purchased a studio apartment in Walton in April 2004. The question was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Identical flats in Walton with 100 year plus lease were in the region of £181,200. The average amount of ground rent was £65 billed per annum. The lease expired on 26 May 2082. Having 56 years left we approximated the premium to the landlord for the lease extension to be within £29,500 and £34,000 plus expenses.
An example of a Lease Extension decision for a Walton flat is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case related to 1 flat. The unexpired residue of the current lease was 82.93 years.