Vauxhall leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Vauxhall enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Vauxhall you would be well advised to check if your lease has between seventy and ninety years left. There are good reasons why a Vauxhall leaseholder with a lease having around eighty years left should take steps to make sure that a lease extension is effected without delay
It is generally considered that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Vauxhall 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 conveyancing solicitor we work with provide it.
Teddy was the the leasehold proprietor of a 2 bedroom flat in Vauxhall being sold with a lease of fraction over 61 years left. Teddy on an informal basis approached his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be due on a lease extension were Teddy to exercise his statutory right. Teddy obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2013 we were phoned by Ms W Torres who, having bought a basement apartment in Vauxhall in January 2004. We are asked if we could approximate the price would be to extend the lease by 90 years. Comparable residencies in Vauxhall with an extended lease were in the region of £248,000. The average ground rent payable was £65 collected monthly. The lease concluded on 4 October 2089. Having 63 years unexpired we estimated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 plus legals.
An example of a Lease Extension decision for a Vauxhall premises is Flats 12A & 19, Evelyn Mansions Carlisle Place in June 2009. The Tribunal held that the price to be paid for the new lease of Flat 12A is £168,824, For the other flat the price was set at £169,110 This case was in relation to 2 flats. The unexpired residue of the current lease was 56 years.