The only way is down when it comes to Putney Heath lease terms. Putney Heath properties that have a remaining term shorter than eighty years will drop in market price even faster, and the cost of extending your lease will go up.
Leasehold properties in Putney Heath with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Putney Heath 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 conveyancing solicitor we work with provide it.
Last Winter Eli, started to get close to the eighty-year mark with the lease on his first floor flat in Putney Heath. In buying his flat two decades ago, the unexpired term was of little bearing. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Eli was able to extend his lease at the eleventh hour in May. Eli and the freeholder ultimately settled on the final figure of £5,500 . If the lease had fallen below eighty years, the sum would have escalated by a minimum £925.
In 2011 we were called by Mrs R Flores who, having owned a ground floor apartment in Putney Heath in August 2001. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparable flats in Putney Heath with a long lease were valued about £275,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease termination date was on 24 May 2094. Given that there were 69 years remaining we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Putney Heath residence 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 affected 3 flats. The number of years remaining on the existing lease(s) was 66.25 years.