Wandsworth leases on residential properties are gradually losing value. if your lease has in the region of ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Wandsworth will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In certain cases you may not be entitled. There are prescribed timetables and procedures to follow once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Wandsworth,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wandsworth valuers.
Trailing lengthy correspondence with the freeholder of her studio apartment in Wandsworth, Bethan commenced the lease extension process just as her lease was nearing the crucial eighty-year mark. The legal work completed in February 2013. The landlord’s charges were kept to an absolute minimum.
Last Christmas we were approach by Mr and Mrs. K Turner , who purchased a garden apartment in Wandsworth in January 2007. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Comparative residencies in Wandsworth with a long lease were valued about £250,000. The average amount of ground rent was £50 collected per annum. The lease concluded on 24 January 2095. Considering the 69 years unexpired we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
An example of a Freehold Enfranchisement decision for a Wandsworth property is 4 Galveston Road in August 2012. The Tribunal determined that the price payable in respect of the purchase of the freehold was £22,650. The Tribunal remited this matter back to the Wandsworth County Court for execution of the freehold Transfer Deed. This case was in relation to 2 flats.