As the length of the unexpired term of a Putney residential lease diminished so does its value and therefore the value of your property. Where the residual term has, more than 99 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease without delay. Most flat owners in Putney will meet the qualifying criteria; however a lawyer should be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Putney with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Putney,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Putney valuers.
Following unsuccessful correspondence with the freeholder of her first floor apartment in Putney, Millie initiated the lease extension process as the eighty year deadline was swiftly nearing. The transaction completed in September 2013. The freeholder’s charges were negotiated to approximately four hundred GBP.
Ms Jordan Lewis was assigned a lease of a first floor flat in Putney in September 2010. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Comparative flats in Putney with an extended lease were in the region of £181,600. The mid-range ground rent payable was £55 collected yearly. The lease ended on 10 May 2078. Having 52 years unexpired we calculated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 plus fees.
An example of a Freehold Enfranchisement case for a Putney premises 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.