The closer a residential lease in Walkington gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, over 125 years to run then this decrease may be fractional that being said there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Many flat owners in Walkington will meet the qualifying criteria; that being said a conveyancer should be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Walkington with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| 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. |
| 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. |
Retaining our service will provide you better control over the value of your Walkington 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 have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Andrew was the the leasehold owner of a high value apartment in Walkington being marketed with a lease of fraction over 59 years remaining. Andrew on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Andrew to invoke his statutory right. Andrew procured expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2010 we were e-mailed by Dr R Hernández who, having moved into a ground floor flat in Walkington in June 2006. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Walkington with 100 year plus lease were valued around £233,200. The average ground rent payable was £60 collected quarterly. The lease lapsed in 2087. Having 61 years outstanding we estimated the premium to the landlord to extend the lease to be within £22,800 and £26,400 not including fees.
Ms K Anderson purchased a purpose-built apartment in Walkington in June 2001. We are asked if we could estimate the price would likely be for a 90 year lease extension. Similar premises in Walkington with 100 year plus lease were worth £171,800. The mid-range ground rent payable was £55 invoiced quarterly. The lease ended on 26 February 2076. Given that there were 50 years left we approximated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 plus professional charges.