Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Walderslade. Clearly, the period of lease remaining reduces over time. This may slip by relatively unnoticed when the residence has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Walderslade have the right to extend the lease for an additional 90 years in accordance with legislation. Please give due deliberation before putting off your Walderslade lease extension. Putting off that expense now likely increases the price you will ultimately incur for a lease extension
Leasehold premises in Walderslade with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Irrespective of whether you are a tenant or a landlord in Walderslade,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Walderslade valuers.
Blake owned a 2 bedroom apartment in Walderslade being marketed with a lease of a little over sixty years left. Blake informally approached his freeholder a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Blake to invoke his statutory right. Blake procured expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Last Winter we were approach by Dr Jacob Sánchez , who bought a garden flat in Walderslade in April 2001. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Similar premises in Walderslade with a long lease were worth £267,600. The average amount of ground rent was £65 invoiced per annum. The lease expired on 18 August 2092. Given that there were 67 years left we approximated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of fees.
Last month we were e-mailed by Mr and Mrs. M Flores , who was assigned a lease of a one bedroom flat in Walderslade in February 2004. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Identical properties in Walderslade with a long lease were valued around £206,200. The average ground rent payable was £55 collected per annum. The lease ended on 1 April 2081. Considering the 56 years left we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus legals.