As the length of the unexpired term of a Wallington residential lease lessens so does its value and therefore the value of your property. Where the residual term has, in excess of 99 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Wallington will meet the qualifying criteria; however a conveyancer should be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Wallington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last year Ben, started to get close to the eighty-year mark with the lease on his one bedroom apartment in Wallington. In buying his property twenty years ago, the lease term was of minimal importance. by good luck, he realised he would soon be paying an inflated amount for Extending the lease. Ben extended the lease just in the nick of time last January. Ben and the freeholder via the managing agents eventually settled on sum of £6,000 . If the lease had slipped below 80 years, the sum would have increased by at least £1,025.
Mr and Mrs. F Sharif moved into a garden apartment in Wallington in August 2012. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Identical homes in Wallington with an extended lease were worth £210,000. The mid-range amount of ground rent was £50 billed annually. The lease expired on 10 July 2106. Given that there were 80 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including legals.
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 unexpired lease term was 72 years.