On the balance of probabilities if you own a flat in Wallingford you actually own a long leasehold interest over your property
Leasehold premises in Wallingford with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Lease extensions in Wallingford can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Wallingford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Joshua owned a studio flat in Wallingford being marketed with a lease of just over sixty years outstanding. Joshua informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Joshua to exercise his statutory right. Joshua obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
In 2013 we were called by Mrs G Bonnet who, having purchased a one bedroom flat in Wallingford in November 1996. The question was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Identical flats in Wallingford with 100 year plus lease were worth £174,200. The average amount of ground rent was £55 invoiced every twelve months. The lease lapsed on 20 November 2077. Taking into account 51 years left we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of professional charges.
Last year we were approach by Mr and Mrs. A Rogers , who bought a garden flat in Wallingford in April 2011. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable properties in Wallingford with an extended lease were valued around £285,000. The mid-range amount of ground rent was £45 invoiced annually. The lease ran out in 2097. Considering the 71 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of expenses.