When it comes to domestic leasehold property in Walton on the Naze, you are actually purchasing a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are fewer than 80 years left. Residents in Walton on the Naze with a lease nearing 81 years unexpired should seriously think of extending it without delay. Once a lease has fewer than 80 years outstanding, under the current Act the freeholder is entitled to calculate and charge a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Walton on the Naze with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Walton on the Naze leasehold, as your property will be more valuable and saleable in respect of lease length should you want 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 ground floor apartment in Walton on the Naze, Rosie commenced the lease extension process as the eighty year threshold was rapidly nearing. The transaction completed in July 2009. The landlord’s costs were restricted to about 600 pounds.
In 2010 we were called by Mr and Mrs. J Fournier who, having acquired a ground floor flat in Walton on the Naze in August 2011. We are asked if we could estimate the price could be to extend the lease by ninety years. Identical properties in Walton on the Naze with 100 year plus lease were valued around £280,000. The average ground rent payable was £45 collected per annum. The lease ended in 2094. Having 69 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus expenses.
Dr Nathaniel Robinson bought a recently refurbished flat in Walton on the Naze in March 2011. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparable flats in Walton on the Naze with an extended lease were in the region of £216,000. The average ground rent payable was £60 invoiced monthly. The lease expiry date was on 13 September 2083. Considering the 58 years outstanding we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including expenses.