Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Wallington. Clearly, the period of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Wallington have the right to extend the lease for a further ninety years under Leasehold Reform legislation. You should give due deliberation before delaying your Wallington lease extension. Putting off that expense now simply increases the price you will ultimately incur for a lease extension
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Lease extensions in Wallington can be a difficult process. We recommend you secure guidance from a conveyancer and valuer 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.
James was the the leasehold owner of a 2 bedroom flat in Wallington on the market with a lease of fraction over 72 years left. James informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were James to invoke his statutory right. James procured expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Ms Lucy Ricardo owned a first floor apartment in Wallington in April 1999. The dilemma was if we could estimate the price could be to prolong the lease by ninety years. Similar homes in Wallington with 100 year plus lease were worth £233,200. The mid-range ground rent payable was £60 collected yearly. The lease expired on 14 April 2086. Having 61 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 plus fees.
An example of a Freehold Enfranchisement decision for a Wallington property 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 term was 72 years.