As the length of the unexpired term of a Wallington domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, beyond 99 years to run then this decrease may be negligible however there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner than later. The majority of flat owners in Wallington will meet the qualifying criteria; nevertheless a conveyancer should be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Wallington with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure 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 Leon, came critically near to the eighty-year threshold with the lease on his garden flat in Wallington. In buying his property two decades ago, the length of the lease was of no interest. Fortunately, it dawned on him that he would soon be paying way over the odds for Extending the lease. Leon extended the lease at the eleventh hour in September. Leon and the landlord in the end settled on sum of £5,000 . If he had missed the deadline, the figure would have gone up by at least £1,050.
In 2013 we were contacted by Mr and Mrs. T Baker who, having moved into a purpose-built apartment in Wallington in November 2004. The question was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative homes in Wallington with 100 year plus lease were worth £201,200. The average ground rent payable was £55 collected annually. The lease expiry date was on 27 August 2081. Given that there were 56 years unexpired we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of costs.
An example of a Freehold Enfranchisement matter before the tribunal 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 was in relation to 2 flats. The unexpired residue of the current lease was 72 years.