Unfortunately that a Walkington residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Walkington property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term falls below eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Walkington will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Walkington,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Walkington valuers.
Off the back of lengthy negotiations with the freeholder of her two bedroom apartment in Walkington, Millie started the lease extension process just as the lease was nearing the crucial eighty-year threshold. The lease extension was finalised in April 2015. The landlord’s fees were kept to an absolute minimum.
Last Christmas we were phoned by Mr and Mrs. J Pérez , who moved into a studio apartment in Walkington in March 1996. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Comparable homes in Walkington with a long lease were valued about £267,600. The average ground rent payable was £65 billed every twelve months. The lease ended on 7 May 2092. Given that there were 67 years as a residual term we approximated the premium to the landlord to extend the lease to be within £14,300 and £16,400 exclusive of costs.
In 2009 we were phoned by Mrs U Taylor who, having acquired a studio apartment in Walkington in February 1998. The question was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparable residencies in Walkington with a long lease were worth £206,200. The mid-range ground rent payable was £55 collected every twelve months. The lease ran out in 2081. Considering the 56 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus fees.