There is no doubt about it a leasehold property in Walkden is a wasting asset as a result of the shortening lease. Where the residual term has, more than 100 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease without delay. Many flat owners in Walkden will qualify for this right; that being said a conveyancer can confirm whether you qualify to extend your lease. 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 Walkden with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Walkden can be a difficult process. We recommend you secure guidance from a conveyancer and valuer 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 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.
In 2014 Lucas, started to get near to the 80-year threshold with the lease on his first floor flat in Walkden. Having bought his flat 19 years ago, the unexpired term was of no importance. Thankfully, he noticed he needed to take action soon on a lease extension. Lucas arranged for a lease extension just under the wire in September. Lucas and the freeholder in the end settled on sum of £5,000 . If he not met the deadline, the amount would have escalated by at least £1,075.
Mr and Mrs. M Williams purchased a ground floor flat in Walkden in September 2006. The question was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparative premises in Walkden with 100 year plus lease were valued around £237,600. The average ground rent payable was £45 collected annually. The lease elapsed in 2093. Having 67 years remaining we estimated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 plus expenses.
In 2010 we were contacted by Mr C Nelson who, having bought a one bedroom flat in Walkden in August 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Comparable homes in Walkden with an extended lease were in the region of £280,000. The average ground rent payable was £55 collected annually. The lease ran out on 1 January 2103. Considering the 77 years unexpired we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus legals.