The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in South West London can extend the lease for a further 90 years in accordance with statute. Please think carefully before delaying your South West London lease extension. Putting off that expense now simply increases the premium you will ultimately have to pay for a lease extension.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Lease extensions in South West London can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with South West London lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Felix, came perilously near to the 80-year threshold with the lease on his studio flat in South West London. Having bought his flat twenty years previously, the unexpired term was of little bearing. As luck would have it, he recognised he would imminently be paying an escalated premium for a lease extension. Felix was able to extend his lease just under the wire last January. Felix and the landlord who owned the flat above eventually agreed on an amount of £6,000 . If he not met the deadline, the premium would have escalated by at least £975.
Dr Noah Martinez was assigned a lease of a studio flat in South West London in October 1995. The dilemma was if we could approximate the price could be to prolong the lease by ninety years. Comparative premises in South West London with a long lease were worth £240,600. The average amount of ground rent was £65 invoiced monthly. The lease expiry date was on 27 January 2087. Considering the 62 years as a residual term we estimated the premium to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of legals.
An example of a Freehold Enfranchisement matter before the tribunal for a South West London property is 78 & 80 Newport Road in January 2013. the Tribunal concluded that the premium to be paid by the leaseholder in respect of the freehold reversion is £23,105 This case was in relation to 2 flats. The unexpired lease term was 71.63 years.