Putney leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Putney tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Putney you really ought to see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Putney flat owner with a lease having around eighty years left should take steps to ensure that a lease extension is actioned without delay
Leasehold premises in Putney with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Putney leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Harry, started to get close to the 80-year mark with the lease on his leasehold flat in Putney. Having bought his flat twenty years previously, the unexpired term was of minimal bearing. Thankfully, he became aware that he needed to take action soon on a lease extension. Harry extended the lease just ahead of time last July. Harry and the freeholder subsequently settled on a premium of £5,000 . If the lease had gone to less than eighty years, the sum would have increased by a minimum £1,100.
Mrs P Gómez acquired a newly refurbished flat in Putney in October 2008. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparable residencies in Putney with an extended lease were worth £205,000. The mid-range ground rent payable was £50 billed monthly. The lease ran out on 17 August 2103. Considering the 78 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £7,600 and £8,800 plus legals.
An example of a Freehold Enfranchisement decision 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 related to 3 flats. The unexpired lease term was 66.25 years.