With a long leasehold property in Vauxhall, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than eighty years remaining. Anyone in Vauxhall with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. When a lease has fewer than eighty years left, under the relevant Act the landlord is entitled to calculate and demand a greater amount, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Vauxhall with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service will provide you better control over the value of your Vauxhall leasehold, as your property will be more valuable and saleable in relation to the 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.
In the wake of 9 months of protracted negotiations with the freeholder of her leasehold flat in Vauxhall, Isobel initiated the lease extension process just as her lease was approaching the all-important 80-year threshold. The transaction was concluded in August 2005. The freeholder’s fees were kept to an absolute minimum.
Last Christmas we were approach by Mr and Mrs. Y Peterson , who moved into a studio apartment in Vauxhall in October 2005. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical residencies in Vauxhall with 100 year plus lease were in the region of £240,600. The average amount of ground rent was £60 collected quarterly. The lease ran out on 25 March 2087. Given that there were 62 years unexpired we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of fees.
An example of a Lease Extension case for a Vauxhall flat 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.