Putney leases on domestic properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Putney will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In some cases you may not be entitled. There are also strict timetables and formalities to follow once the process is initiated so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Putney with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Regardless of whether you are a tenant or a freeholder in Putney,the lease extension lawyers 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 one bedroom flat in Putney, Charlotte started the lease extension process as the eighty year threshold was quickly coming. The lease extension was concluded in May 2014. The landlord’s charges were restricted to under five hundred GBP.
Mr and Mrs. O White purchased a one bedroom flat in Putney in May 2008. The question was if we could estimate the premium could be for a ninety year extension to my lease. Similar properties in Putney with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 billed annually. The lease lapsed on 7 February 2103. Having 77 years unexpired we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Putney 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 unexpired term as at the valuation date was 66.25 years.