It’s an underpublicised truth that a Walton on the Naze residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Walton on the Naze property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining slips under eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Walton on the Naze will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold residencies in Walton on the Naze with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Regardless of whether you are a tenant or a landlord in Walton on the Naze,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Walton on the Naze valuers.
In 2014 Ibrahim, came perilously close to the eighty-year mark with the lease on his leasehold flat in Walton on the Naze. Having bought his property 18 years ago, the length of the lease was of no concern. Fortunately, he realised he would soon be paying way over the odds for Extending the lease. Ibrahim extended the lease just under the wire in August. Ibrahim and the freeholder in the end settled on the final figure of £5,500 . If the lease had slipped lower than eighty years, the sum would have increased by at least £1,000.
Mr Kai Evans completed a studio flat in Walton on the Naze in October 1996. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable homes in Walton on the Naze with 100 year plus lease were in the region of £189,000. The average ground rent payable was £55 collected per annum. The lease finished in 2079. Given that there were 53 years outstanding we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.
Mr W Roberts took over the lease of a garden apartment in Walton on the Naze in June 2010. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparative residencies in Walton on the Naze with a long lease were in the region of £290,000. The average ground rent payable was £45 invoiced monthly. The lease expiry date was on 2 August 2099. Taking into account 73 years left we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.