Vauxhall leases on domestic properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Flat owners in Vauxhall will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain circumstances you may not qualify. There are also strict timetables and steps to comply with once the process has commenced so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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. |
Retaining our service gives you enhanced control over the value of your Vauxhall leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
George owned a studio flat in Vauxhall on the market with a lease of just over fifty eight years outstanding. George on an informal basis approached his freeholder being a well known local-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 on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were George to exercise his statutory right. George obtained expert advice and secured satisfactory deal informally and sell the flat.
Mr and Mrs. P Ricardo acquired a purpose-built apartment in Vauxhall in August 1998. The question was if we could approximate the price would be to prolong the lease by 90 years. Identical residencies in Vauxhall with 100 year plus lease were valued about £189,000. The mid-range ground rent payable was £55 billed per annum. The lease terminated on 8 February 2077. Taking into account 53 years left we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including professional charges.
An example of a Lease Extension case 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 term was 56 years.