As the length of the unexpired term of a Walkden residential lease diminished so does its value and therefore the value of your property. If the residual term has, more than 125 years remaining then this decrease may be of little impact however there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending sooner as opposed to later. Many flat owners in Walkden will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Walkden can be a difficult process. We recommend you secure professional help from a conveyancer and valuer 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 a wealth of experience procuring Walkden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful correspondence with the freeholder of her purpose-built apartment in Walkden, Alisha initiated the lease extension process as the 80 year mark was swiftly advancing. The legal work completed in June 2005. The freeholder’s charges were negotiated to under 500 GBP.
Last Winter we were phoned by Mr and Mrs. T King , who was assigned a lease of a ground floor flat in Walkden in May 1995. The question was if we could approximate the premium would be for a ninety year extension to my lease. Similar homes in Walkden with 100 year plus lease were valued around £176,200. The average amount of ground rent was £65 collected per annum. The lease ran out on 3 August 2081. Having 56 years left we estimated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 plus expenses.
Last Spring we were approach by Mr and Mrs. Y Ali , who bought a garden flat in Walkden in June 2000. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Identical homes in Walkden with an extended lease were in the region of £237,600. The mid-range amount of ground rent was £45 invoiced monthly. The lease expiry date was on 25 March 2092. Having 67 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 plus fees.