The re-sale value of a leasehold property in North Walsham is impacted by how long the lease has left to run. If it is near to or less than eighty years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years to run so that all matters can be finalised prior to the eighty year threshold. Statute enables North Walsham qualifying lessees to an additional term of ninety years over and above the unexpired term, at a notional rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in North Walsham can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with North Walsham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted correspondence with the landlord of her ground floor apartment in North Walsham, Ellen commenced the lease extension process as the 80 year mark was quickly approaching. The legal work was concluded in March 2008. The freeholder’s charges were kept to an absolute minimum.
Mr Nathaniel Allen bought a basement flat in North Walsham in March 2006. The question was if we could approximate the price would be to prolong the lease by ninety years. Similar properties in North Walsham with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 invoiced annually. The lease elapsed in 2094. Having 69 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.
Last Spring we were phoned by Dr Nathan Brooks , who completed a recently refurbished flat in North Walsham in April 2002. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparable premises in North Walsham with a long lease were worth £290,000. The average ground rent payable was £60 billed yearly. The lease concluded in 2105. Having 80 years left we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus costs.