Walkington leases on residential properties are gradually decreasing in 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. It is the case that most Walkington tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Walkington you really ought to check if your lease has between 70 and ninety years remaining. There are good reasons why a Walkington leaseholder with a lease having around 80 years remaining should take steps to make sure that a lease extension is effected without delay
Leasehold properties in Walkington with more than one hundred years remaining on the lease are sometimes regarded as a ‘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 reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 professional help from a conveyancer and surveyor with experience in lease extensions.
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 in-depth market knowledge 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.
In the wake of eight months of unsuccessful negotiations with the freeholder of her garden flat in Walkington, Rachel started the lease extension process just as her lease was nearing the critical 80-year threshold. The legal work completed in May 2008. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. A King was assigned a lease of a studio apartment in Walkington in February 2005. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Identical flats in Walkington with a long lease were worth £240,600. The mid-range ground rent payable was £60 collected annually. The lease came to a finish in 2088. Having 62 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 plus legals.
In 2009 we were called by Dr Sebastian Robinson who, having took over the lease of a purpose-built flat in Walkington in May 2007. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable flats in Walkington with 100 year plus lease were valued about £174,200. The mid-range amount of ground rent was £55 billed every twelve months. The lease termination date was on 13 April 2077. Considering the 51 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including fees.