Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Walkington. Inevitably, the period of lease remaining reduces over time. This is often ignored and only becomes a problem when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Walkington have the right to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Please give due consideration before delaying your Walkington lease extension. Holding off the cost now likely increases the price you will eventually have to pay to extend your lease
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Walkington leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful negotiations with the freeholder of her first floor flat in Walkington, Abigail commenced the lease extension process as the eighty year threshold was swiftly approaching. The legal work was concluded in August 2006. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. U Taylor purchased a one bedroom flat in Walkington in January 2010. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Identical premises in Walkington with 100 year plus lease were valued about £200,000. The mid-range ground rent payable was £50 invoiced annually. The lease concluded in 2102. Having 77 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.
Last Autumn we were approach by Dr Alisha Murphy , who acquired a one bedroom apartment in Walkington in July 2001. The question was if we could approximate the price would likely be to extend the lease by an additional years. Comparative flats in Walkington with 100 year plus lease were in the region of £260,200. The mid-range ground rent payable was £65 invoiced yearly. The lease expired in 2091. Given that there were 66 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £15,200 and £17,600 not including legals.