The market value of a leasehold property in Walkington is impacted by how many years the lease has left to run. If it is close to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that all matters can be concluded prior to the 80 year threshold. Current legislation enables Walkington qualifying lessees to acquire a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Walkington with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Godiva Mortgages | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Walkington,the lease extension lawyers that we work with will always be willing 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 discussions with the freeholder of her purpose-built apartment in Walkington, Isabelle initiated the lease extension process just as the lease was approaching the crucial eighty-year deadline. The lease extension completed in February 2006. The freeholder’s fees were restricted to under 600 GBP.
Last Autumn we were contacted by Mr and Mrs. B Moreau , who acquired a basement apartment in Walkington in April 1995. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Identical residencies in Walkington with 100 year plus lease were worth £300,000. The average ground rent payable was £50 collected annually. The lease terminated on 19 July 2102. Given that there were 76 years outstanding we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus professional charges.
In 2012 we were contacted by Ms Samantha Baker who, having acquired a purpose-built flat in Walkington in November 1997. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical premises in Walkington with 100 year plus lease were valued about £257,800. The average amount of ground rent was £65 collected quarterly. The lease terminated on 22 March 2091. Given that there were 65 years as a residual term we calculated the premium to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of costs.