Why you should commence your Walton on the Hill lease extension

Why you should commence your Walton on the Hill lease extension today:

A Walton on the Hill leasehold property depreciates with the years remaining on the lease.

Walton on the Hill leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Walton on the Hill enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Walton on the Hill you would be well advised to see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value

Walton on the Hill property with a lease extension is almost the same value as a freehold

Leasehold properties in Walton on the Hill with more than 100 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Lenders may decide not to grant a mortgage with a short lease

Most banks have narrowed their lending criteria in the last ten years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against property with shorter lease terms, particularly below 75 years as they are considered to be inadequate for lending purposes.

Get in touch with one of our Walton on the Hill lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Walton on the Hill,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Walton on the Hill valuers.

Walton on the Hill Lease Extension Case Studies:

Oliver, Walton on the Hill, Surrey,

Oliver was the the leasehold proprietor of a 2 bedroom flat in Walton on the Hill being marketed with a lease of fraction over 61 years unexpired. Oliver informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be due on a lease extension were Oliver to exercise his statutory right. Oliver procured expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.

Walton on the Hill case:

In 2010 we were approached by Mr and Mrs. C Kelly who, having acquired a studio apartment in Walton on the Hill in March 2011. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparative properties in Walton on the Hill with 100 year plus lease were worth £285,000. The average amount of ground rent was £45 billed yearly. The lease ran out on 22 October 2097. Considering the 71 years remaining we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus professional charges.