Wallington leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Wallington residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Wallington you should check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Wallington leaseholder with a lease having around 80 years remaining should take steps to ensure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Wallington,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wallington valuers.
During the course of the last few months Samuel, started to get close to the 80-year mark with the lease on his ground floor apartment in Wallington. In buying his flat 19 years ago, the lease term was of minimal interest. Thankfully, he recognised he needed to take action soon on a lease extension. Samuel was able to extend his lease just under the wire in May. Samuel and the landlord who owned the flat above subsequently settled on the final figure of £5,500 . If the lease had slipped below 80 years, the premium would have become more exhorbitant by at least £875.
Last month we were e-mailed by Mr and Mrs. I Phillips , who bought a one bedroom flat in Wallington in September 2006. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative homes in Wallington with an extended lease were valued about £285,000. The average amount of ground rent was £45 billed quarterly. The lease lapsed in 2096. Given that there were 71 years remaining we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.
An example of a Freehold Enfranchisement decision for a Wallington residence 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 related to 2 flats. The unexpired term as at the valuation date was 72 years.