When it comes to domestic leasehold premises in Putney, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Anyone in Putney with a lease drawing near to 81 years left should seriously think of extending it without delay. Once a lease has less than eighty years outstanding, under the relevant Act the landlord is entitled to calculate and charge a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Putney,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Putney valuers.
Twenty four months ago Oliver, started to get near to the eighty-year mark with the lease on his first floor apartment in Putney. Having bought his home two decades ago, the unexpired term was of minimal significance. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Oliver was able to extend his lease just in the nick of time in January. Oliver and the freeholder via the management company subsequently settled on an amount of £6,000 . If he had missed the deadline, the figure would have increased by at least £1,025.
In 2009 we were called by Dr Muhammad Moore who, having moved into a ground floor flat in Putney in April 1997. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Comparative homes in Putney with a long lease were in the region of £196,400. The average amount of ground rent was £55 invoiced per annum. The lease concluded on 25 February 2080. Considering the 54 years remaining we calculated the compensation to the landlord to extend the lease to be within £35,200 and £40,600 not including professional charges.
An example of a Freehold Enfranchisement case for a Putney flat 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 residue of the current lease was 66.25 years.