There is no doubt about it a leasehold flat or house in Walkden is a wasting asset as a result of the diminishing lease term. Where the residual term has, over 100 years to run then this decrease may be fractional that being said there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner than later. Many flat owners in Walkden will meet the qualifying criteria; that being said a conveyancer should be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Walkden with in excess of one hundred years remaining on the lease are often regarded as a ‘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 upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 get professional help from a conveyancer and surveyor 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 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.
During the course of the last few months Isaac, started to get close to the eighty-year mark with the lease on his garden apartment in Walkden. Having purchased his home two decades ago, the length of the lease was of little concern. Fortunately, he realised he would soon be paying an inflated amount for Extending the lease. Isaac extended the lease just in the nick of time last March. Isaac and the freeholder via the management company in the end settled on the final figure of £5,500 . If the lease had dropped to less than eighty years, the amount would have increased by a minimum £1,125.
In 2011 we were contacted by Mr and Mrs. C Alexander who, having acquired a first floor flat in Walkden in July 2010. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by a further 90 years. Identical premises in Walkden with a long lease were in the region of £200,800. The average ground rent payable was £65 collected every twelve months. The lease ended on 28 April 2085. Taking into account 60 years as a residual term we estimated the premium to the landlord to extend the lease to be between £20,900 and £24,200 not including fees.
Mr and Mrs. S Wood purchased a one bedroom flat in Walkden in May 2005. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Comparative homes in Walkden with 100 year plus lease were valued about £255,000. The mid-range amount of ground rent was £50 collected annually. The lease lapsed in 2096. Having 71 years left we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.