Walton on the Naze residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
Leasehold properties in Walton on the Naze with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
The conveyancing solicitors that we work with undertake Walton on the Naze lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last year Ollie, came seriously near to the eighty-year mark with the lease on his garden apartment in Walton on the Naze. In buying his flat 18 years ago, the length of the lease was of no relevance. Thankfully, he realised he would imminently be paying way over the odds for a lease extension. Ollie extended the lease just in the nick of time last August. Ollie and the freeholder via the managing agents ultimately agreed on an amount of £5,000 . If he not met the deadline, the sum would have gone up by at least £975.
Mr and Mrs. P Lewis acquired a studio flat in Walton on the Naze in February 2005. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable premises in Walton on the Naze with a long lease were worth £290,000. The average ground rent payable was £45 billed annually. The lease came to a finish in 2097. Given that there were 72 years left we approximated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus legals.
Mr Toby Clarke bought a studio flat in Walton on the Naze in September 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Comparative homes in Walton on the Naze with 100 year plus lease were valued about £233,200. The mid-range amount of ground rent was £60 collected yearly. The lease lapsed on 23 June 2086. Considering the 61 years remaining we calculated the premium to the landlord for the lease extension to be between £22,800 and £26,400 plus fees.