There is no doubt about it a leasehold flat or house in Walton is a wasting asset as a result of the diminishing lease term. Where the residual term has, more than 99 years to run then this decrease may be negligible that being said there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Walton will meet the qualifying criteria; nevertheless a conveyancer should be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Walton with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
The conveyancers that we work with undertake Walton 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 conveyancer we work with provide it.
Last Christmas Edward, started to get near to the eighty-year mark with the lease on his basement apartment in Walton. Having purchased his home 19 years previously, the unexpired term was of minimal significance. by good luck, he became aware that he needed to take action soon on a lease extension. Edward extended the lease at the eleventh hour last September. Edward and the landlord subsequently settled on the final figure of £5,000 . If the lease had descended to less than 80 years, the price would have become more exhorbitant by a minimum £925.
Last year we were contacted by Dr M Parker , who was assigned a lease of a studio apartment in Walton in March 2011. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Identical residencies in Walton with an extended lease were valued around £275,000. The mid-range ground rent payable was £55 collected annually. The lease concluded on 19 November 2103. Having 77 years left we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including professional charges.
An example of a Lease Extension case for a Walton property is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case was in relation to 1 flat. The unexpired residue of the current lease was 82.93 years.