Why you should commence your Walton lease extension

Why you should start your Walton lease extension today:

A Walton leasehold property depreciates with the years remaining on the lease.

When it comes to residential leasehold property in Walton, you are actually buying a right to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are less than eighty years left. Anyone in Walton with a lease drawing near to 81 years unexpired should seriously think of extending it sooner as opposed to later. Once a lease has less than eighty years left, under the relevant Act the freeholder is entitled to calculate and demand a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.

An extended lease is almost the same value as a freehold

Leasehold premises in Walton with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.

Banks and Building Societies will not loan monies with a short lease

The definition of a short lease varies by mortgage company, yet lending institutions start to get nervous at around 75 years. This may cause difficulties when you come to sell or remortgage your flat as it will be practically unmortgageable. You might have no immediate plan to sell but when you do your buyer must wait two years before being able to start the legal procedures for a lease extension.

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

Irrespective of whether you are a tenant or a landlord in Walton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Walton valuers.

Walton Lease Extension Example Cases:

Hannah, Walton, Leeds,

Subsequent to protracted negotiations with the landlord of her basement apartment in Walton, Hannah commenced the lease extension process as the eighty year mark was swiftly nearing. The legal work completed in June 2014. The landlord’s fees were kept to an absolute minimum.

Walton case:

In 2009 we were phoned by Mr Stanley Norbert who, having bought a studio flat in Walton in September 2009. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Comparative homes in Walton with an extended lease were valued about £254,200. The average ground rent payable was £60 invoiced quarterly. The lease lapsed in 2077. Given that there were 51 years unexpired we estimated the premium to the freeholder to extend the lease to be between £43,700 and £50,600 not including fees.