Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Wallingford. Clearly, the period of lease left reduces as time goes by. This is often ignored and only raises itself as an issue when the property has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Eligible leaseholders in Wallingford have the right to extend the lease for an additional 90 years in accordance with legislation. Please give due deliberation before putting off your Wallingford lease extension. Putting off the cost now simply increases the price you will ultimately incur to extend your lease
Leasehold premises in Wallingford with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord 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.
Luke owned a conversion flat in Wallingford being sold with a lease of just over 61 years left. Luke informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Luke to exercise his statutory right. Luke procured expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
Last Autumn we were e-mailed by Mr and Mrs. T Lefebvre , who completed a first floor flat in Wallingford in June 2003. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Comparable flats in Wallingford with an extended lease were valued about £216,000. The mid-range ground rent payable was £60 collected annually. The lease ended in 2083. Having 58 years remaining we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus expenses.
Last January we were called by Ms D Cox , who bought a recently refurbished flat in Wallingford in May 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparative flats in Wallingford with a long lease were in the region of £200,000. The average amount of ground rent was £50 invoiced monthly. The lease ran out on 15 July 2103. Having 78 years outstanding we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.