Unfortunately that a Walkden residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Walkden property market.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be due. Most leasehold owners in Walkden will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold premises in Walkden with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Retaining our service gives you increased control over the value of your Walkden leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 George, came seriously near to the 80-year mark with the lease on his purpose- built apartment in Walkden. In buying his home 19 years ago, the lease term was of minimal concern. by good luck, it dawned on him that he needed to take action soon on a lease extension. George arranged for a lease extension just ahead of time in September. George and the landlord who owned the flat above in the end settled on an amount of £5,500 . If he not met the deadline, the amount would have increased by a minimum £850.
Last Autumn we were called by Mr and Mrs. R Martin , who purchased a one bedroom flat in Walkden in March 2006. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparative homes in Walkden with a long lease were valued about £270,000. The mid-range amount of ground rent was £55 billed quarterly. The lease ran out on 13 October 2099. Given that there were 75 years unexpired we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.
Last year we were called by Ms Poppy Morgan , who moved into a basement flat in Walkden in January 2004. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Comparative premises in Walkden with a long lease were worth £168,800. The mid-range amount of ground rent was £60 collected per annum. The lease elapsed on 22 October 2079. Given that there were 55 years remaining we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of professional charges.