As the the remaining lease term of a Putney domestic lease decreases so does its value and therefore the value of your property. If the lease has, more than 100 years to run then this decrease may be negligible that being said there will become a stage when a lease has less than eighty 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 sooner as opposed to later. The majority of flat owners in Putney will meet the qualifying criteria; that being said a conveyancing solicitor will be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Putney leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Ryan, started to get close to the 80-year threshold with the lease on his first floor apartment in Putney. Having purchased his property 18 years ago, the unexpired term was of little concern. Thankfully, he noticed he needed to take steps soon on Extending the lease. Ryan was able to extend his lease at the eleventh hour last March. Ryan and the freeholder in the end settled on the final figure of £5,500 . If he had missed the deadline, the premium would have gone up by at least £975.
Dr Teddy Díaz acquired a basement apartment in Putney in June 2009. The dilemma was if we could estimate the price would be to extend the lease by a further 90 years. Comparable premises in Putney with 100 year plus lease were worth £230,800. The average ground rent payable was £60 collected per annum. The lease terminated on 15 July 2086. Taking into account 60 years left we calculated the compensation to the landlord to extend the lease to be between £24,700 and £28,600 plus costs.
An example of a Freehold Enfranchisement matter before the tribunal 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 unexpired term was 66.25 years.