Why you should start your Wallington lease extension

Why you should start your Wallington lease extension today:

A Wallington leasehold property depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Wallington depends on how many years the lease has remaining. If it is near to or fewer than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to commence the lease extension process when the lease still has 82 years remaining so that all matters can be concluded well before the 80 year cut off point. Statute enables Wallington qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Wallington with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.

Mortgage lenders will not loan monies on a short lease

The definition of a short lease depends on the specific mortgage company, yet mortgage lenders start to get concerned at around 75 years. This may cause difficulties as and when you come to dispose of or refinance your property as it will be practically unmortgageable. You may have no immediate plan to sell but when you do your purchaser must hold off for 2 years before being able to exercise the right to a an extension to the lease.

Get in touch with one of our Wallington lease extension solicitors or enfranchisement solicitors

Lease extensions in Wallington can be a difficult process. We recommend you get 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.

Wallington Lease Extension Example Cases:

Mason, Wallington, Surrey,

Mason was the the leasehold owner of a conversion flat in Wallington being marketed with a lease of fraction over 59 years remaining. Mason informally approached his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Mason to invoke his statutory right. Mason obtained expert advice and was able to make a more informed decision and handle with the matter and sell the property.

Wallington case:

Dr B Hall took over the lease of a ground floor flat in Wallington in January 1997. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Similar residencies in Wallington with 100 year plus lease were worth £181,600. The mid-range amount of ground rent was £55 invoiced annually. The lease ended in 2078. Having 52 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of costs.