Wallington leases on domestic properties are gradually losing value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Wallington will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In some situations you may not be entitled. There are prescribed timetables and steps to comply with once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Regardless of whether you are a tenant or a freeholder 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 Callum, came critically close to the 80-year mark with the lease on his leasehold apartment in Wallington. Having purchased his property two decades ago, the lease term was of no interest. by good luck, it dawned on him that he would soon be paying way over the odds for a lease extension. Callum extended the lease just ahead of time in May. Callum and the freeholder via the managing agents ultimately settled on an amount of £6,000 . If he failed to meet the deadline, the sum would have increased by at least £1,100.
In 2014 we were e-mailed by Ms Jennifer Rogers who, having was assigned a lease of a one bedroom flat in Wallington in September 2004. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Identical flats in Wallington with an extended lease were in the region of £243,000. The mid-range amount of ground rent was £65 billed annually. The lease lapsed on 12 April 2089. Considering the 63 years unexpired we approximated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 plus fees.
An example of a Freehold Enfranchisement case 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 affected 2 flats. The remaining number of years on the lease was 72 years.