There is no doubt about it a leasehold property in Walton Le Dale is a wasting asset as a result of the diminishing lease term. If the lease has, over one hundred years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Most flat owners in Walton Le Dale will qualify for this right; nevertheless a conveyancing solicitor can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Walton Le Dale with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify 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. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
The conveyancing solicitors that we work with undertake Walton Le Dale 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 lawyer we work with provide it.
Two years ago Samuel, came perilously near to the eighty-year mark with the lease on his first floor apartment in Walton Le Dale. Having purchased his flat two decades ago, the length of the lease was of little significance. Luckily, he realised he would imminently be paying way over the odds for a lease extension. Samuel arranged for a lease extension at the eleventh hour last April. Samuel and the landlord who owned the flat above subsequently settled on an amount of £5,000 . If the lease had dipped lower than eighty years, the sum would have escalated by at least £1,025.
Last year we were phoned by Mr C Sánchez , who bought a studio apartment in Walton Le Dale in October 2002. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Similar homes in Walton Le Dale with a long lease were worth £285,000. The average amount of ground rent was £45 billed monthly. The lease came to a finish in 2098. Given that there were 72 years outstanding we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.
In 2014 we were e-mailed by Mr and Mrs. E Carter who, having purchased a one bedroom flat in Walton Le Dale in March 2006. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Comparative flats in Walton Le Dale with a long lease were worth £233,200. The average amount of ground rent was £60 billed per annum. The lease ended on 27 August 2087. Given that there were 61 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 not including expenses.