Wallingford leases on domestic properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Wallingford will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain circumstances you may not be entitled. There are also strict timetables and formalities to follow once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Wallingford with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. 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 |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Wallingford,the lease extension experts 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 Wallingford valuers.
Last year Nathaniel, started to get close to the eighty-year mark with the lease on his studio apartment in Wallingford. Having bought his home 19 years ago, the length of the lease was of minimal interest. As luck would have it, he became aware that he would soon be paying way over the odds for Extending the lease. Nathaniel was able to extend his lease at the eleventh hour last May. Nathaniel and the landlord subsequently settled on a premium of £6,000 . If the lease had descended below 80 years, the figure would have become more costly by at least £900.
Last Spring we were approach by Mr and Mrs. E Johnson , who moved into a garden apartment in Wallingford in April 1995. The dilemma was if we could estimate the price would be to extend the lease by ninety years. Similar premises in Wallingford with an extended lease were valued about £243,000. The average ground rent payable was £65 invoiced monthly. The lease ran out on 19 November 2089. Taking into account 63 years remaining we calculated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 not including fees.
Mrs Melissa Morris completed a one bedroom flat in Wallingford in April 2009. The question was if we could approximate the premium would be to prolong the lease by an additional years. Comparable homes in Wallingford with a long lease were valued about £181,600. The mid-range amount of ground rent was £55 collected annually. The lease terminated on 15 September 2078. Having 52 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including expenses.