It’s a harsh truth that a Putney Heath residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Putney Heath property market.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining falls under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Putney Heath will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the process.
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Putney Heath can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Putney Heath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Jasper, came very near to the eighty-year mark with the lease on his first floor apartment in Putney Heath. Having bought his flat 18 years ago, the unexpired term was of minimal relevance. Thankfully, he became aware that he would imminently be paying an inflated amount for Extending the lease. Jasper extended the lease just under the wire in September. Jasper and the landlord subsequently agreed on a premium of £5,500 . If the lease had gone to less than 80 years, the price would have increased by a minimum £1,100.
In 2011 we were approached by Dr R Morris who, having owned a first floor flat in Putney Heath in November 1998. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Identical properties in Putney Heath with a long lease were worth £285,000. The average ground rent payable was £45 billed every twelve months. The lease end date was in 2097. Considering the 71 years outstanding we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of expenses.
An example of a Freehold Enfranchisement decision for a Putney Heath property is 19 St. Margarets Crescent in August 2010. the tribunal was of the view that the premium to be paid by the leaseholder for the freehold reversion was £51,983.00 This case was in relation to 3 flats. The unexpired lease term was 66.25 years.