The nearer a residential lease in Wimbledon nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, over 125 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Many flat owners in Wimbledon will meet the qualifying criteria; nevertheless a conveyancer can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Virgin |
The conveyancing solicitors that we work with handle Wimbledon 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 conveyancer we work with provide it.
After protracted discussions with the landlord of her leasehold flat in Wimbledon, Amber commenced the lease extension process as the eighty year deadline was swiftly advancing. The lease extension was concluded in July 2011. The landlord’s charges were restricted to below 600 pounds.
In 2009 we were called by Mr and Mrs. N Moore who, having completed a basement apartment in Wimbledon in April 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Similar premises in Wimbledon with a long lease were worth £189,000. The average ground rent payable was £55 billed every twelve months. The lease ran out on 26 February 2079. Considering the 53 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including fees.
An example of a Freehold Enfranchisement matter before the tribunal 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 as at the valuation date was 72.94 years.