Wimbledon leases on residential properties are gradually losing value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be payable. Leasehold owners in Wimbledon will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In some situations you may not be entitled. There are prescribed deadlines and steps to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Wimbledon can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Wimbledon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year George, came perilously close to the 80-year threshold with the lease on his one bedroom apartment in Wimbledon. Having bought his property twenty years ago, the unexpired term was of no concern. Fortunately, he recognised he needed to take action soon on Extending the lease. George arranged for a lease extension at the eleventh hour in June. George and the freeholder subsequently agreed on sum of £5,500 . If the lease had slid to less than 80 years, the figure would have gone up by at least £1,025.
Dr Rachel Ward completed a first floor apartment in Wimbledon in July 1998. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical homes in Wimbledon with an extended lease were worth £210,000. The average amount of ground rent was £50 invoiced yearly. The lease ran out in 2106. Taking into account 80 years left we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Wimbledon premises 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 remaining number of years on the lease was 72.94 years.