When it comes to long leasehold premises in Walmley, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than eighty years remaining. Anyone in Walmley with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has below 80 years remaining, under the current statute the landlord can calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises 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 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your Walmley leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Thomas, came dangerously close to the eighty-year mark with the lease on his one bedroom flat in Walmley. Having purchased his flat 19 years ago, the unexpired term was of little significance. by good luck, he noticed he needed to take steps soon on Extending the lease. Thomas arranged for a lease extension just in the nick of time last May. Thomas and the landlord who owned the flat above ultimately settled on the final figure of £5,500 . If the lease had descended below eighty years, the sum would have escalated by a minimum £950.
Last Autumn we were approach by Dr Daniel Nguyen , who completed a first floor flat in Walmley in September 2002. The question was if we could estimate the premium could be for a ninety year lease extension. Comparative properties in Walmley with a long lease were worth £208,600. The mid-range ground rent payable was £60 collected quarterly. The lease finished on 15 July 2083. Having 57 years outstanding we calculated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of professional charges.
In 2010 we were e-mailed by Ms Grace Peterson who, having took over the lease of a one bedroom flat in Walmley in June 2002. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Identical residencies in Walmley with an extended lease were in the region of £200,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease terminated in 2103. Taking into account 77 years remaining we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.