Walderslade leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Walderslade residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Walderslade you would be well advised to see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Walderslade with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Birmingham Midshires | |
| National Westminster Bank | |
| Skipton Building Society |
Irrespective of whether you are a tenant or a landlord in Walderslade,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Walderslade valuers.
Jacob was the the leasehold owner of a 2 bedroom apartment in Walderslade being sold with a lease of a few days over fifty eight years unexpired. Jacob on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jacob to exercise his statutory right. Jacob procured expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
Ms B Rogers took over the lease of a first floor apartment in Walderslade in January 2001. The question was if we could approximate the price would be to prolong the lease by ninety years. Identical residencies in Walderslade with 100 year plus lease were valued about £171,800. The average ground rent payable was £55 invoiced monthly. The lease termination date was on 20 May 2076. Having 50 years unexpired we calculated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of professional charges.
In 2012 we were called by Dr Jade Bennett who, having was assigned a lease of a ground floor apartment in Walderslade in July 1997. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative flats in Walderslade with a long lease were valued about £280,000. The mid-range ground rent payable was £45 collected quarterly. The lease lapsed in 2096. Taking into account 70 years left we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.