Walkington leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Walkington enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Walkington you really ought to see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold residencies in Walkington with more than 100 years unexpired on the lease are sometimes referred to as ‘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 to be gained by purchasing the freehold unless savings on ground rent and estate charges merit 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 |
Lease extensions in Walkington can be a difficult process. We recommend you obtain guidance from a lawyer 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 Walkington 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 protracted discussions with the landlord of her ground floor flat in Walkington, Kayleigh initiated the lease extension process as the 80 year threshold was quickly nearing. The legal work was concluded in September 2015. The landlord’s charges were kept to an absolute minimum.
In 2011 we were approached by Dr C Miller who, having was assigned a lease of a one bedroom flat in Walkington in February 2009. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Comparable premises in Walkington with an extended lease were valued around £280,000. The mid-range ground rent payable was £45 billed quarterly. The lease came to a finish on 8 October 2096. Given that there were 70 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.
Last October we were e-mailed by Dr P Ali , who bought a recently refurbished flat in Walkington in May 2000. We are asked if we could estimate the price could be to prolong the lease by an additional years. Similar properties in Walkington with 100 year plus lease were worth £223,400. The mid-range ground rent payable was £60 collected every twelve months. The lease concluded on 6 April 2085. Considering the 59 years outstanding we calculated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 not including professional charges.