Walton on the Naze residential property owned on a long lease is a wasting asset as the leaseholder only owns the property for a period of years.
It is conventional wisdom 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 all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| 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. |
Lease extensions in Walton on the Naze can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Walton on the Naze lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 James, came seriously near to the eighty-year mark with the lease on his studio apartment in Walton on the Naze. In buying his property 19 years ago, the unexpired term was of little relevance. As luck would have it, he became aware that he needed to take action soon on Extending the lease. James extended the lease just ahead of time last April. James and the landlord ultimately agreed on a premium of £6,000 . If the lease had descended below 80 years, the price would have escalated by at least £1,025.
In 2012 we were phoned by Mr Oscar Watson who, having acquired a basement apartment in Walton on the Naze in June 1995. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative residencies in Walton on the Naze with 100 year plus lease were worth £250,400. The mid-range ground rent payable was £65 collected quarterly. The lease came to a finish on 16 October 2090. Taking into account 64 years outstanding we estimated the premium to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of expenses.
Mr and Mrs. T Garcia was assigned a lease of a basement flat in Walton on the Naze in November 2002. The question was if we could estimate the price would be to prolong the lease by an additional years. Similar premises in Walton on the Naze with a long lease were worth £189,000. The mid-range ground rent payable was £55 invoiced monthly. The lease ended on 23 May 2079. Having 53 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of fees.