It’s an underpublicised certainty that a Walton on the Naze residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Walton on the Naze property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining slips below eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Walton on the Naze will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Walton on the Naze,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Walton on the Naze valuers.
In recent months Lewis, started to get near to the 80-year mark with the lease on his studio apartment in Walton on the Naze. Having bought his flat two decades ago, the lease term was of minimal interest. Luckily, he became aware that he would imminently be paying an inflated amount for Extending the lease. Lewis arranged for a lease extension just in the nick of time in March. Lewis and the freeholder subsequently settled on a premium of £5,000 . If he failed to meet the deadline, the amount would have escalated by at least £1,000.
Last year we were approach by Dr Freya Parker , who bought a first floor apartment in Walton on the Naze in March 1997. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Similar homes in Walton on the Naze with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £45 invoiced annually. The lease expired in 2095. Having 70 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus legals.
Last September we were e-mailed by Mr and Mrs. T Davis , who completed a recently refurbished flat in Walton on the Naze in November 1999. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by an additional years. Comparative properties in Walton on the Naze with 100 year plus lease were valued around £223,400. The mid-range amount of ground rent was £60 invoiced quarterly. The lease lapsed on 9 March 2084. Considering the 59 years remaining we calculated the compensation to the landlord for the lease extension to be within £27,600 and £31,800 not including expenses.