Why you should commence your Wandsworth lease extension

Main reasons to start your Wandsworth lease extension today:

A Wandsworth lease depreciates with the years remaining on the lease.

The market value of a leasehold property in Wandsworth depends on how long the lease has left to run. If it is close to or less than 80 years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is preferable to start the lease extension process when the lease still has 82 years to run so that a lease extension can be concluded ahead of the eighty year cut off point. Statute entitles Wandsworth qualifying lessees to an additional term of 90 years in addition to the remaining term, at a peppercorn rent (zero ground rent). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years in the future.

Banks and Building Societies may decide not to loan monies on a short lease

The definition of a short lease varies by mortgage company, yet banks and building societies start to get concerned at around 75 years. This will cause difficulties as and when you come to sell or refinance your flat as it will be practically unmortgageable. Even though you might not have an immediate plan to sell but when you do your purchaser must wait a couple of years before being able to start the legal procedures for a lease extension.

What makes us experts in Wandsworth lease extensions?

The conveyancers that we work with procure Wandsworth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Wandsworth Lease Extension Example Cases:

Jade, Wandsworth, South West London,

Off the back of lengthy discussions with the freeholder of her studio apartment in Wandsworth, Jade started the lease extension process as the eighty year threshold was quickly advancing. The lease extension completed in May 2013. The landlord’s charges were restricted to below five hundred pounds.

Wandsworth case:

In 2010 we were phoned by Mr and Mrs. R Murphy who, having acquired a first floor apartment in Wandsworth in April 2007. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Similar homes in Wandsworth with 100 year plus lease were in the region of £176,200. The average ground rent payable was £65 billed annually. The lease termination date was in 2082. Given that there were 56 years outstanding we approximated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 plus costs.