The market value of a leasehold property in Walsingham is impacted by how many years the lease has remaining. If it is close to or fewer than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be addressed in advance of the 80 year cut off point. Statute enables Walsingham qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Walsingham with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Walsingham leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the freeholder of her studio apartment in Walsingham, Emma started the lease extension process just as her lease was nearing the all-important 80-year mark. The legal work completed in January 2007. The freeholder’s fees were restricted to about 550 GBP.
Last month we were approach by Mrs N Taylor , who completed a basement apartment in Walsingham in August 1996. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Similar residencies in Walsingham with 100 year plus lease were worth £191,400. The mid-range amount of ground rent was £55 billed every twelve months. The lease finished on 21 May 2080. Given that there were 54 years outstanding we estimated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 not including fees.
Mr and Mrs. V González acquired a one bedroom flat in Walsingham in January 2004. We are asked if we could approximate the premium could be for a 90 year lease extension. Similar premises in Walsingham with 100 year plus lease were valued around £295,000. The average ground rent payable was £45 billed annually. The lease elapsed in 2100. Given that there were 74 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.