It’s an underpublicised certainty that a Walham Green residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Walham Green property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term slips under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Walham Green will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold premises in Walham Green with more than 100 years outstanding 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Walham Green can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 Walham Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Samuel owned a studio apartment in Walham Green on the market with a lease of fraction over sixty years remaining. Samuel informally spoke with his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Samuel to exercise his statutory right. Samuel obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
Last Winter we were approach by Ms Rhiannon Scott , who acquired a one bedroom apartment in Walham Green in June 2011. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar premises in Walham Green with 100 year plus lease were valued about £264,000. The mid-range amount of ground rent was £60 collected quarterly. The lease ran out in 2078. Having 53 years remaining we approximated the compensation to the freeholder to extend the lease to be within £37,100 and £42,800 not including expenses.
Dr Kirsty Wilson moved into a recently refurbished flat in Walham Green in August 2008. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable residencies in Walham Green with an extended lease were in the region of £225,400. The average amount of ground rent was £45 billed every twelve months. The lease lapsed on 18 May 2089. Considering the 64 years outstanding we estimated the premium to the landlord to extend the lease to be within £16,200 and £18,600 exclusive of expenses.