As the the remaining lease term of a Walham Green residential lease diminished so does its value and therefore the value of your property. If the residual term has, beyond 125 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Most flat owners in Walham Green will qualify for this right; that being said a conveyancing solicitor will be able to confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Walham Green with more than 100 years unexpired on the lease are often 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 to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Walham Green can be a difficult process. We recommend you procure guidance from a conveyancer 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 a wealth of experience procuring 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.
Max was the the leasehold proprietor of a high value flat in Walham Green on the market with a lease of just over 72 years remaining. Max on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Max to invoke his statutory right. Max obtained expert advice and secured satisfactory resolution informally and sell the flat.
Last Winter we were approach by Ms F Jackson , who bought a ground floor flat in Walham Green in April 2006. We are asked if we could estimate the price would be to prolong the lease by 90 years. Comparable residencies in Walham Green with a long lease were worth £265,000. The average amount of ground rent was £55 billed quarterly. The lease terminated on 2 July 2100. Taking into account 74 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Dr Y James acquired a recently refurbished flat in Walham Green in September 2003. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar premises in Walham Green with 100 year plus lease were worth £166,400. The mid-range amount of ground rent was £60 invoiced annually. The lease elapsed in 2080. Taking into account 54 years outstanding we calculated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 plus professional charges.