North Walsham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in North Walsham enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in North Walsham you would be well advised to investigate if your lease has between seventy and 90 years remaining. There are compelling reasons why a North Walsham flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is put in place without delay
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in North Walsham,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 in-depth market knowledge and the close ties they enjoy with North Walsham valuers.
Two years ago Ryan, came critically close to the 80-year threshold with the lease on his two bedroom flat in North Walsham. Having bought his property 18 years ago, the lease term was of no interest. Fortunately, he became aware that he would soon be paying an inflated amount for a lease extension. Ryan extended the lease at the eleventh hour last March. Ryan and the freeholder via the managing agents eventually settled on an amount of £5,000 . If the lease had slipped below eighty years, the sum would have gone up by at least £1,125.
In 2014 we were approached by Mr and Mrs. B López who, having bought a first floor apartment in North Walsham in September 2004. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Comparable residencies in North Walsham with an extended lease were valued about £210,600. The average ground rent payable was £45 collected monthly. The lease terminated in 2087. Taking into account 62 years left we calculated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 not including costs.
Mr and Mrs. D Morel moved into a garden apartment in North Walsham in January 1998. The dilemma was if we could estimate the price could be for a ninety year lease extension. Identical flats in North Walsham with an extended lease were worth £265,000. The average amount of ground rent was £50 billed every twelve months. The lease ended in 2098. Taking into account 73 years left we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.