The closer a domestic lease in Wimbledon gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, in excess of one hundred years to run then this decrease may be fractional nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Most flat owners in Wimbledon will meet the qualifying criteria; nevertheless a lawyer can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| 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 |
Retaining our service will provide you increased control over the value of your Wimbledon leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of unsuccessful negotiations with the freeholder of her one bedroom flat in Wimbledon, Katherine initiated the lease extension process as the 80 year deadline was swiftly nearing. The transaction was finalised in April 2007. The freeholder’s charges were restricted to under 650 GBP.
In 2014 we were approached by Mr and Mrs. T Davis who, having took over the lease of a purpose-built apartment in Wimbledon in May 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparable premises in Wimbledon with a long lease were in the region of £196,400. The average amount of ground rent was £55 collected every twelve months. The lease expired on 21 March 2080. Taking into account 54 years as a residual term we estimated the premium to the landlord for the lease extension to be within £35,200 and £40,600 plus professional charges.
An example of a Freehold Enfranchisement decision for a Wimbledon residence 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 affected 3 flats. The unexpired term was 72.94 years.