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. If the lease has, beyond 125 years remaining then this decrease may be negligible however there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner rather than later. Many flat owners in Walton will meet the qualifying criteria; that being said a conveyancer can advise whether you are eligible to extend your lease. 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.
It is generally accepted that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a landlord in Walton,the lease extension lawyers 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.
During the course of the last few months Andrew, started to get close to the eighty-year threshold with the lease on his first floor apartment in Walton. In buying his property two decades ago, the unexpired term was of little bearing. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Andrew extended the lease just in the nick of time in June. Andrew and the freeholder ultimately agreed on sum of £5,000 . If he failed to meet the deadline, the sum would have become more costly by a minimum £900.
Dr S Davies took over the lease of a one bedroom apartment in Walton in September 1997. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Identical residencies in Walton with 100 year plus lease were worth £166,400. The average amount of ground rent was £60 billed yearly. The lease concluded in 2080. Having 54 years remaining we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 not including legals.
An example of a Lease Extension matter before the tribunal 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 affected 1 flat. The unexpired term was 82.93 years.