The closer a residential lease in Walsingham nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, beyond 99 years remaining then this decrease may be fractional however there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending sooner as opposed to later. The majority of flat owners in Walsingham will meet the qualifying criteria; that being said a conveyancing solicitor can confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with undertake 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 conveyancer we work with provide it.
Ali owned a conversion flat in Walsingham on the market with a lease of fraction over 59 years outstanding. Ali on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be due on a lease extension were Ali to invoke his statutory right. Ali procured expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Last year we were approach by Ms Mollie García , who owned a garden flat in Walsingham in March 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparative premises in Walsingham with an extended lease were in the region of £275,000. The average ground rent payable was £65 invoiced monthly. The lease finished on 14 September 2093. Considering the 68 years remaining we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.
Mrs R Cook owned a basement apartment in Walsingham in September 2012. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical homes in Walsingham with 100 year plus lease were worth £208,600. The mid-range ground rent payable was £60 billed per annum. The lease came to a finish in 2082. Considering the 57 years outstanding we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 plus professional charges.