With a residential leasehold property in Vauxhall, you are actually buying an entitlement to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than 80 years left. Residents in Vauxhall with a lease drawing near to 81 years left should seriously consider extending it sooner as opposed to later. When a lease has fewer than eighty years remaining, under the relevant statute the freeholder is entitled to calculate and levy a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
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 lawyer we work with provide it.
In recent months Harvey, started to get near to the 80-year threshold with the lease on his basement apartment in Vauxhall. Having purchased his home twenty years previously, the unexpired term was of little interest. Luckily, he noticed he needed to take steps soon on a lease extension. Harvey was able to extend his lease just in the nick of time in January. Harvey and the freeholder via the managing agents ultimately agreed on an amount of £6,000 . If the lease had slid below 80 years, the sum would have gone up by a minimum £1,050.
Last May we were approach by Mr Ryan Baker , who moved into a studio flat in Vauxhall in September 2004. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Identical homes in Vauxhall with a long lease were in the region of £265,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease lapsed on 6 May 2092. Taking into account 66 years outstanding we calculated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 exclusive of costs.
An example of a Lease Extension case for a Vauxhall residence 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 number of years remaining on the existing lease(s) was 56 years.