There is no doubt about it a leasehold property in North Walsham is a wasting asset as a result of the diminishing lease term. If the residual term has, more than 100 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner than later. Many flat owners in North Walsham will meet the qualifying criteria; nevertheless a conveyancer should be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord in North Walsham,the lease extension solicitors that we work with will always be willing 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 Jasper, came dangerously near to the eighty-year mark with the lease on his two bedroom flat in North Walsham. In buying his property two decades ago, the lease term was of no concern. Luckily, he realised he would soon be paying way over the odds for Extending the lease. Jasper extended the lease just ahead of time last April. Jasper and the freeholder via the management company in the end agreed on sum of £5,500 . If the lease had descended to less than 80 years, the sum would have become more costly by at least £1,050.
Mr C Gómez moved into a ground floor flat in North Walsham in October 2007. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical premises in North Walsham with a long lease were worth £246,800. The average amount of ground rent was £60 billed monthly. The lease came to a finish in 2075. Having 50 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 not including legals.
Last Autumn we were contacted by Mr Jude García , who moved into a purpose-built apartment in North Walsham in November 2000. We are asked if we could estimate the price could be to prolong the lease by ninety years. Comparable residencies in North Walsham with 100 year plus lease were valued around £208,200. The average amount of ground rent was £65 invoiced per annum. The lease finished on 7 February 2086. Considering the 61 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 exclusive of professional charges.