As the length of the unexpired term of a Walton On Thames domestic lease diminished so does its value and therefore the value of your property. Where the lease has, in excess of 99 years remaining then this decrease may be of little impact however there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease sooner than later. Most flat owners in Walton On Thames will qualify for this right; however a conveyancer should be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Walton On Thames with in excess of 100 years unexpired 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 property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| 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; |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Walton On Thames 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.
After lengthy discussions with the freeholder of her ground floor flat in Walton On Thames, Naomi started the lease extension process as the 80 year mark was quickly advancing. The legal work completed in April 2005. The landlord’s costs were negotiated to less than five hundred pounds.
Dr U Dupont owned a studio apartment in Walton On Thames in January 2007. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Identical flats in Walton On Thames with an extended lease were valued around £255,000. The mid-range ground rent payable was £50 invoiced monthly. The lease termination date was in 2096. Having 70 years left we approximated the compensation to the freeholder to extend the lease to be between £10,500 and £12,000 not including fees.
An example of a Lease Extension case for a Walton On Thames flat is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case related to 1 flat. The unexpired residue of the current lease was 82.93 years.