Chances are that if you own a flat in Walsingham you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure Walsingham 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 conveyancing solicitor we work with provide it.
Ryan owned a conversion apartment in Walsingham being sold with a lease of a few days over 61 years left. Ryan on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Ryan to invoke his statutory right. Ryan obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last Summer we were called by Mr John Roberts , who bought a newly refurbished apartment in Walsingham in February 1999. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparable premises in Walsingham with 100 year plus lease were worth £210,000. The average ground rent payable was £50 billed every twelve months. The lease ended in 2105. Taking into account 80 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus expenses.
Last year we were e-mailed by Dr Molly Dupont , who completed a studio flat in Walsingham in January 2010. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Walsingham with a long lease were in the region of £275,000. The mid-range amount of ground rent was £45 billed quarterly. The lease terminated on 10 April 2094. Having 69 years unexpired we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.