The re-sale value of a leasehold property in Walderslade depends on how long the lease has left to run. If it is close to or fewer than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that a lease extension can be concluded in advance of the eighty year cut off point. Current legislation enables Walderslade qualifying lessees to an additional term of 90 years in addition to the remaining term, at a notional rent (no 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.
Leasehold premises in Walderslade with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Walderslade can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in this area.
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 Walderslade lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Freddie owned a conversion flat in Walderslade being marketed with a lease of just over sixty years outstanding. Freddie on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Freddie to invoke his statutory right. Freddie procured expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Last month we were phoned by Mr John Cooper , who purchased a purpose-built apartment in Walderslade in February 2007. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative residencies in Walderslade with an extended lease were in the region of £208,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease came to a finish in 2083. Considering the 57 years outstanding we approximated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of legals.
Mr and Mrs. H Bonnet was assigned a lease of a purpose-built apartment in Walderslade in March 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Identical properties in Walderslade with a long lease were worth £200,000. The mid-range ground rent payable was £50 billed annually. The lease finished on 4 May 2103. Considering the 77 years unexpired we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.