Walton leases on residential deteriorating in value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Walton will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Walton with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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 also be not less than 75 years at the outset of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Walton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Walton valuers.
18 months ago Felix, started to get near to the 80-year mark with the lease on his ground floor flat in Walton. In buying his home two decades ago, the lease term was of no relevance. Fortunately, he recognised he needed to take action soon on a lease extension. Felix extended the lease at the eleventh hour in June. Felix and the landlord subsequently settled on the final figure of £5,000 . If he not met the deadline, the amount would have gone up by a minimum £1,025.
In 2013 we were phoned by Dr W Evans who, having completed a first floor flat in Walton in November 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparative properties in Walton with an extended lease were worth £210,600. The average ground rent payable was £45 collected every twelve months. The lease elapsed in 2087. Given that there were 62 years left we approximated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of legals.
An example of a Lease Extension case 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.