Unfortunately that a South West London residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the South West London property market.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining slips under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in South West London will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold residencies in South West London with in excess of 100 years remaining 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 premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in South West London,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with South West London valuers.
In the wake of 6 months of lengthy negotiations with the freeholder of her basement apartment in South West London, Emily initiated the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The legal work was concluded in May 2010. The freeholder’s charges were restricted to a tad over 550 pounds.
Last year we were called by Mr Cameron Brooks , who completed a one bedroom flat in South West London in August 2007. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical flats in South West London with a long lease were valued around £300,000. The average ground rent payable was £50 billed per annum. The lease came to a finish in 2101. Given that there were 75 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.
An example of a Freehold Enfranchisement case for a South West London flat 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.