Wallingford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Wallingford tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Wallingford you must investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Wallingford with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Wallingford leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted discussions with the landlord of her one bedroom apartment in Wallingford, Samantha commenced the lease extension process as the 80 year threshold was fast nearing. The transaction was finalised in November 2005. The landlord’s fees were negotiated to below 700 GBP.
Ms Phoebe Patel purchased a purpose-built flat in Wallingford in September 2007. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable homes in Wallingford with a long lease were valued about £210,000. The average amount of ground rent was £50 billed every twelve months. The lease elapsed in 2106. Considering the 80 years outstanding we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including legals.
Mr and Mrs. R Campbell was assigned a lease of a basement apartment in Wallingford in June 2001. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Wallingford with 100 year plus lease were valued around £275,000. The mid-range ground rent payable was £45 collected monthly. The lease concluded in 2095. Taking into account 69 years outstanding we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.