With a residential leasehold premises in Walmley, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than 80 years remaining. Anyone in Walmley with a lease approaching 81 years left should seriously consider extending it sooner than later. Once a lease has less than eighty years remaining, under the relevant Act the landlord can calculate and levy a larger premium, based on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Walmley,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Walmley valuers.
Half a year ago Reuben, started to get close to the 80-year threshold with the lease on his basement flat in Walmley. In buying his property two decades ago, the unexpired term was of no concern. Fortunately, he became aware that he would soon be paying an inflated amount for a lease extension. Reuben arranged for a lease extension at the eleventh hour last July. Reuben and the landlord eventually agreed on the final figure of £6,000 . If he had missed the deadline, the price would have become more exhorbitant by a minimum £1,100.
Dr Sebastian Michel acquired a basement apartment in Walmley in June 2002. The question was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Similar flats in Walmley with 100 year plus lease were worth £275,000. The average amount of ground rent was £45 billed per annum. The lease ran out in 2094. Considering the 69 years remaining we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including professional charges.
Mr and Mrs. F Collins bought a first floor apartment in Walmley in January 1997. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Comparative homes in Walmley with a long lease were worth £216,000. The average amount of ground rent was £60 billed annually. The lease came to a finish in 2083. Having 58 years remaining we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus costs.