Wallington leases on residential deteriorating in value. if your lease has about 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the existing lease drops under 80 years - otherwise a higher amount will be payable. Flat owners in Wallington will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some situations you may not be entitled. There are prescribed deadlines and steps to follow once the process has started so it’s wise to be guided by a lawyer during the process.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Wallington can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Wallington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Omar, came perilously close to the eighty-year mark with the lease on his one bedroom flat in Wallington. Having bought his home two decades ago, the unexpired term was of little significance. As luck would have it, it dawned on him that he needed to take steps soon on Extending the lease. Omar was able to extend his lease at the eleventh hour in May. Omar and the landlord who owned the flat above subsequently agreed on sum of £5,000 . If the lease had slid to less than 80 years, the sum would have escalated by at least £1,050.
Last Autumn we were phoned by Dr K Davies , who was assigned a lease of a one bedroom apartment in Wallington in November 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparable premises in Wallington with an extended lease were valued about £300,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease came to a finish in 2102. Given that there were 76 years unexpired we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.
An example of a Freehold Enfranchisement case for a Wallington flat 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 was in relation to 2 flats. The unexpired term was 72 years.