Walham Green leases on residential properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Flat owners in Walham Green will mostly qualify for a lease extension; however a solicitor will check if you qualify. In some circumstances you may not be entitled. There are prescribed deadlines and procedures to comply with once the process has started so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Walham Green with in excess of 100 years remaining 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 property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Retaining our service gives you increased control over the value of your Walham Green leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Sam, came precariously near to the 80-year threshold with the lease on his first floor flat in Walham Green. Having purchased his flat two decades ago, the unexpired term was of little significance. As luck would have it, he noticed he needed to take action soon on Extending the lease. Sam extended the lease just under the wire last June. Sam and the freeholder ultimately agreed on a premium of £6,000 . If the lease had dipped lower than 80 years, the amount would have gone up by a minimum £850.
In 2010 we were contacted by Ms Sophie Girard who, having was assigned a lease of a first floor flat in Walham Green in February 2007. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical residencies in Walham Green with 100 year plus lease were worth £176,200. The average amount of ground rent was £65 invoiced yearly. The lease elapsed in 2082. Considering the 56 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 exclusive of legals.
Mr and Mrs. C Anderson completed a one bedroom apartment in Walham Green in March 2007. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparative homes in Walham Green with a long lease were worth £242,600. The mid-range amount of ground rent was £45 billed annually. The lease elapsed on 18 October 2093. Taking into account 67 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 not including costs.