Top reasons for Wallington lease extension

Main reasons to commence your Wallington lease extension today:

Increase your lease and increase your Wallington property value

With a long leasehold property in Wallington, you are actually buying an entitlement to live in a property for a prescribed time frame. These days flat leases are usually granted 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. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Residents in Wallington with a lease drawing near to 81 years remaining should seriously consider extending it without delay. When a lease has under eighty years remaining, under the current Act the landlord can calculate and charge a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.

An extended lease is almost the same value as a freehold

Leasehold properties in Wallington with in excess of one hundred years unexpired on the lease are often 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 estate charges warrant it.

Lending institutions may not lend with a short lease

Lending institutions have set criteria when lending monies charged on leasehold property. Some will simply refrain from lending at all once an unexpired lease term drops lower than a certain unexpired lease term. Many Banks and Building Societies will not regard property with a remaining below seventy years as adequate security. In addition to this being important when selling, it is also relevant where you are seeking to remortgage your Wallington property.

What makes us experts in Wallington lease extensions?

The conveyancers 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 lawyer we work with provide it.

Wallington Lease Extension Case Summaries:

Jack, Wallington, Surrey

Last year Jack, started to get close to the 80-year threshold with the lease on his two bedroom flat in Wallington. Having bought his home 19 years ago, the lease term was of minimal significance. Thankfully, he realised he needed to take steps soon on Extending the lease. Jack arranged for a lease extension at the eleventh hour in June. Jack and the freeholder via the managing agents subsequently agreed on an amount of £6,000 . If he not met the deadline, the figure would have escalated by at least £900.

Wallington case:

In 2014 we were e-mailed by Mr and Mrs. F Thomas who, having was assigned a lease of a purpose-built apartment in Wallington in October 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Identical flats in Wallington with a long lease were worth £275,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease came to a finish in 2094. Having 68 years outstanding we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.