When it comes to residential leasehold premises in Walkden, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially when there are fewer than 80 years remaining. Residents in Walkden with a lease approaching 81 years left should seriously think of extending it sooner as opposed to later. Once the lease term has under eighty years left, under the current legislation the landlord can calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is due.
Leasehold properties in Walkden with over one hundred years remaining on the lease are often 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Walkden can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in lease extensions.
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 dealing with Walkden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Leo, started to get close to the eighty-year mark with the lease on his garden apartment in Walkden. In buying his flat two decades ago, the unexpired term was of minimal interest. Luckily, he realised he would imminently be paying an escalated premium for a lease extension. Leo arranged for a lease extension at the eleventh hour last June. Leo and the landlord who owned the flat above subsequently settled on the final figure of £5,000 . If he failed to meet the deadline, the premium would have gone up by a minimum £900.
Mr and Mrs. K Sharif bought a basement apartment in Walkden in April 2011. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Walkden with a long lease were in the region of £260,000. The mid-range ground rent payable was £50 collected per annum. The lease ran out on 14 May 2097. Taking into account 72 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
In 2014 we were e-mailed by Mr Freddie Petit who, having was assigned a lease of a newly refurbished flat in Walkden in January 2003. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar flats in Walkden with 100 year plus lease were in the region of £256,600. The average amount of ground rent was £60 invoiced yearly. The lease finished in 2077. Taking into account 52 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £41,800 and £48,400 not including expenses.