Wallington leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Wallington enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Wallington you really ought to see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Wallington,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wallington valuers.
Two years ago Zachary, started to get close to the 80-year mark with the lease on his ground floor apartment in Wallington. In buying his flat two decades ago, the unexpired term was of little concern. As luck would have it, it dawned on him that he would soon be paying way over the odds for a lease extension. Zachary was able to extend his lease just under the wire last May. Zachary and the landlord who owned the flat above in the end settled on an amount of £6,000 . If he not met the deadline, the amount would have increased by a minimum £1,075.
In 2011 we were called by Mr J Parker who, having was assigned a lease of a one bedroom flat in Wallington in October 2011. The question was if we could estimate the price would likely be to extend the lease by ninety years. Comparable residencies in Wallington with an extended lease were worth £198,800. The mid-range amount of ground rent was £55 billed annually. The lease finished in 2081. Taking into account 55 years unexpired we estimated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 not including costs.
An example of a Freehold Enfranchisement decision for a Wallington flat 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 remaining number of years on the lease was 72 years.