Why you should start your Walton lease extension

Main reasons to commence your Walton lease extension today:

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

With a residential leasehold property in Walton, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Leasehold owners in Walton with a lease approaching 81 years left should seriously think of extending it without delay. When a lease has less than eighty years left, under the relevant statute the landlord can calculate and charge a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.

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

Leasehold premises in Walton with in excess of one hundred years unexpired on the lease are often 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 to be gained by buying the freehold unless savings on ground rent and service charges warrant it.

Mortgage lenders will not grant a mortgage on a short lease

Nearly all mortgage lenders require a lengthy amount of time left on any leasehold property before they will consider providing a mortgage on it. Regardless of whether you require a mortgage, you should be mindful that it is likely that someone wanting to buy your property in the future might well do, so in the event that they are unable to secure a mortgage, then the financial worth of your property could be adversely impacted. In the last decade many mortgage lenders have increased the required minimum lease length that they are willing to accept

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

Regardless of whether you are a tenant or a freeholder in Walton,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 valuers.

Walton Lease Extension Case Studies:

Dexter, Walton, Leeds,

Dexter owned a high value flat in Walton on the market with a lease of a little over 61 years outstanding. Dexter informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Dexter to invoke his statutory right. Dexter obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.

Walton case:

In 2010 we were phoned by Mr Jasper Gray who, having took over the lease of a one bedroom flat in Walton in September 2008. The dilemma was if we could estimate the premium would likely be to extend the lease by 90 years. Comparative premises in Walton with an extended lease were valued about £173,800. The mid-range amount of ground rent was £65 billed annually. The lease ran out on 25 April 2081. Having 55 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 plus costs.