Owning a apartment 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 witnessed longer and shorter terms in Wallington. Clearly, the term of lease remaining reduces over time. This is often ignored and only raises itself as an issue when the residence needs to be sold or refinanced. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Wallington have the legal entitlement to extend the lease for a further 90 years in accordance with legislation. You should give due consideration before delaying your Wallington lease extension. Holding off that expense now simply increases the price you will ultimately have to pay for a lease extension
It is generally considered 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 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake 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 conveyancing solicitor we work with provide it.
In recent months Dylan, came perilously near to the 80-year threshold with the lease on his leasehold flat in Wallington. In buying his property 18 years ago, the length of the lease was of no interest. by good luck, he recognised he would soon be paying an escalated premium for a lease extension. Dylan arranged for a lease extension at the eleventh hour in March. Dylan and the landlord eventually agreed on sum of £6,000 . If he not met the deadline, the figure would have gone up by at least £1,150.
Mr and Mrs. K King was assigned a lease of a studio flat in Wallington in March 2004. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar premises in Wallington with an extended lease were in the region of £166,800. The average ground rent payable was £50 billed annually. The lease ran out in 2075. Given that there were 50 years remaining we calculated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 plus professional charges.
An example of a Freehold Enfranchisement matter before the tribunal 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 affected 2 flats. The unexpired term was 72 years.