When it comes to domestic leasehold premises in Wallington, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Residents in Wallington with a lease drawing near to 81 years left should seriously consider extending it without delay. When the lease term has under 80 years remaining, under the relevant statute the freeholder is entitled to calculate and demand a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The conveyancing solicitors that we work with handle 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.
In 2014 William, started to get close to the eighty-year mark with the lease on his garden apartment in Wallington. In buying his property two decades ago, the unexpired term was of minimal importance. Fortunately, he realised he needed to take steps soon on Extending the lease. William arranged for a lease extension at the eleventh hour last August. William and the landlord eventually agreed on sum of £5,000 . If he had missed the deadline, the price would have become more costly by at least £875.
Mr Gabriel Brooks acquired a ground floor flat in Wallington in August 2005. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Comparable homes in Wallington with a long lease were in the region of £295,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease expired on 10 September 2100. Given that there were 74 years left we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of fees.
An example of a Freehold Enfranchisement case for a Wallington premises 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.