Walmley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Walmley residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Walmley you should check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Walmley leaseholder with a lease having around eighty years unexpired should take steps to ensure that a lease extension is put in place without delay
Leasehold residencies in Walmley with over one hundred years unexpired 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 upside in buying the reversionary interest 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The conveyancing solicitors that we work with undertake Walmley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
During the course of the last few months Kai, came perilously close to the eighty-year mark with the lease on his two bedroom flat in Walmley. In buying his flat 18 years ago, the unexpired term was of little interest. Fortunately, he realised he would soon be paying way over the odds for a lease extension. Kai was able to extend his lease just under the wire last June. Kai and the landlord in the end settled on the final figure of £6,000 . If the lease had descended below eighty years, the sum would have gone up by a minimum £1,025.
Dr John Rogers bought a one bedroom apartment in Walmley in November 1999. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative homes in Walmley with an extended lease were worth £181,600. The mid-range amount of ground rent was £55 billed yearly. The lease ran out on 16 October 2078. Taking into account 52 years remaining we approximated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 not including professional charges.
In 2013 we were called by Dr Rachel Lee who, having bought a purpose-built flat in Walmley in May 2008. We are asked if we could estimate the price could be for a ninety year lease extension. Comparable properties in Walmley with a long lease were in the region of £290,000. The average amount of ground rent was £45 collected yearly. The lease expired in 2098. Considering the 72 years remaining we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus costs.