When it comes to long leasehold premises in Wallington, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider 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 fewer than 80 years remaining. Leasehold owners in Wallington with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has under 80 years left, under the relevant legislation the freeholder is entitled to calculate and levy a larger premium, based on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Wallington leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Spring Oliver, came dangerously close to the 80-year threshold with the lease on his ground floor flat in Wallington. Having purchased his property twenty years ago, the unexpired term was of minimal relevance. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Oliver arranged for a lease extension just under the wire in July. Oliver and the landlord who owned the flat above in the end agreed on the final figure of £5,000 . If he not met the deadline, the price would have gone up by at least £925.
Mr B Roux owned a newly refurbished apartment in Wallington in February 2004. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical homes in Wallington with a long lease were in the region of £295,000. The average ground rent payable was £50 collected monthly. The lease expired in 2101. Taking into account 75 years outstanding we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Wallington residence is 21 & 23 Carshalton Grove in May 2009. the Tribunal adopted the figures presented as the premiums payable by the Applicant i.e. a total of £20,750. This case related to 2 flats. The number of years remaining on the existing lease(s) was 72 years.