When it comes to long leasehold property in Walkington, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly once there are fewer than 80 years remaining. Residents in Walkington with a lease nearing 81 years remaining should seriously think of extending it without delay. When the lease term has under 80 years outstanding, under the relevant legislation the freeholder can calculate and charge a larger amount, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years in the future.
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 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. |
| 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. |
Engaging our service gives you better control over the value of your Walkington leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Thomas owned a 2 bedroom apartment in Walkington being sold with a lease of a little over 61 years remaining. Thomas informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Thomas to exercise his statutory right. Thomas procured expert legal guidance and secured an acceptable deal without going to tribunal and sell the flat.
In 2013 we were called by Mr and Mrs. I Bailey who, having purchased a one bedroom apartment in Walkington in February 2004. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative flats in Walkington with an extended lease were valued around £257,800. The mid-range amount of ground rent was £65 billed every twelve months. The lease expired in 2090. Having 65 years remaining we approximated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 not including professional charges.
In 2010 we were phoned by Dr Harry Nguyen who, having completed a first floor apartment in Walkington in April 2003. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparative homes in Walkington with an extended lease were in the region of £191,400. The average ground rent payable was £55 invoiced yearly. The lease lapsed on 10 September 2079. Having 54 years left we calculated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 plus professional charges.