Unfortunately that a Wandsworth residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Wandsworth property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term dips 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 additional value that a lease extension will add the property The majority of flat owners in Wandsworth will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Lease extensions in Wandsworth can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Wandsworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Michael, started to get near to the eighty-year mark with the lease on his garden apartment in Wandsworth. Having purchased his flat 19 years previously, the length of the lease was of minimal relevance. by good luck, it dawned on him that he would imminently be paying way over the odds for a lease extension. Michael arranged for a lease extension just under the wire last September. Michael and the landlord in the end agreed on the final figure of £5,500 . If the lease had descended lower than 80 years, the premium would have gone up by a minimum £850.
Mr and Mrs. K Garcia owned a one bedroom apartment in Wandsworth in August 1997. The question was if we could approximate the price could be to prolong the lease by 90 years. Comparative homes in Wandsworth with an extended lease were in the region of £200,800. The mid-range amount of ground rent was £65 collected per annum. The lease came to a finish in 2085. Considering the 60 years left we calculated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 plus legals.
An example of a Freehold Enfranchisement case for a Wandsworth premises 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 affected 2 flats.