It’s an underpublicised truth that a Walkington residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Walkington property prices.Where your lease has approximately ninety years left, you should start thinking about 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 falls under eighty years - otherwise a higher premium will be payable. The majority of flat owners in Walkington will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some situations you may not be entitled. 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 from beginning to end of the process.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Walkington,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Walkington valuers.
Felix was the the leasehold proprietor of a 2 bedroom apartment in Walkington being sold with a lease of fraction over fifty eight years left. Felix informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Felix to exercise his statutory right. Felix procured expert legal guidance and secured satisfactory deal without going to tribunal and sell the property.
In 2013 we were called by Mr E Reed who, having owned a one bedroom flat in Walkington in October 1999. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Identical residencies in Walkington with 100 year plus lease were worth £189,000. The average ground rent payable was £55 billed annually. The lease expired in 2079. Given that there were 53 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus professional charges.
In 2014 we were phoned by Dr W Bernard who, having took over the lease of a first floor flat in Walkington in March 2008. The question was if we could estimate the price could be to extend the lease by ninety years. Comparable flats in Walkington with a long lease were in the region of £290,000. The mid-range ground rent payable was £45 invoiced yearly. The lease end date was on 14 August 2099. Having 73 years left we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.