Walton on the Naze leases on domestic deteriorating in value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Walton on the Naze will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In certain situations you may not be entitled. There are also strict deadlines and steps to comply with once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Walton on the Naze with over 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 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.
Ben owned a studio apartment in Walton on the Naze being marketed with a lease of just over 72 years left. Ben on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ben to invoke his statutory right. Ben procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
In 2013 we were approached by Mr Oliver Díaz who, having took over the lease of a garden apartment in Walton on the Naze in January 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by an additional years. Comparative flats in Walton on the Naze with 100 year plus lease were in the region of £265,200. The mid-range amount of ground rent was £65 invoiced annually. The lease elapsed on 8 April 2092. Considering the 66 years left we estimated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 plus costs.
In 2012 we were called by Mr and Mrs. F Williams who, having took over the lease of a studio flat in Walton on the Naze in March 1997. The dilemma was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative residencies in Walton on the Naze with a long lease were valued around £198,800. The average ground rent payable was £55 collected quarterly. The lease terminated in 2081. Taking into account 55 years remaining we calculated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 exclusive of expenses.