The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Wimbledon can extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Please give careful consideration before delaying your Wimbledon lease extension. Putting off the costs now simply increases the amount you will eventually be required to pay to extend the lease.
Leasehold properties in Wimbledon with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Leeds Building Society | |
| National Westminster Bank | |
| TSB | |
| Virgin |
Regardless of whether you are a tenant or a landlord in Wimbledon,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wimbledon valuers.
Last Autumn Mason, came dangerously near to the eighty-year threshold with the lease on his garden flat in Wimbledon. In buying his home twenty years ago, the length of the lease was of minimal relevance. Luckily, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Mason was able to extend his lease just under the wire last September. Mason and the freeholder eventually settled on a premium of £5,500 . If the lease had slipped below eighty years, the price would have escalated by a minimum £1,150.
In 2011 we were called by Mr Dexter Peterson who, having bought a one bedroom apartment in Wimbledon in September 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Similar flats in Wimbledon with an extended lease were in the region of £257,800. The average amount of ground rent was £65 billed quarterly. The lease elapsed on 20 February 2091. Considering the 65 years remaining we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 plus professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Wimbledon flat is 629 Garratt Lane in September 2014. The consideration payable for the acquisition of the freehold of the subject property was the sum £21,302.74. This represented a valuation of the freehold in the sum of £23,864 from which the sum of £2561.27 has been deducted in respect of certain costs in repairing and insuring the premises This case related to 3 flats. The unexpired term as at the valuation date was 72.94 years.