The market value of Wandsworth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the remaining term is below than 80 years
Leasehold residencies in Wandsworth with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Wandsworth,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 Wandsworth valuers.
Two years ago Elijah, came perilously close to the 80-year mark with the lease on his first floor flat in Wandsworth. Having purchased his property two decades ago, the unexpired term was of little relevance. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Elijah arranged for a lease extension just in the nick of time last August. Elijah and the freeholder eventually agreed on sum of £6,000 . If the lease had fallen below 80 years, the price would have become more costly by a minimum £925.
Last Spring we were phoned by Dr C Hill , who was assigned a lease of a first floor apartment in Wandsworth in October 2009. The question was if we could approximate the price would likely be to prolong the lease by an additional years. Comparable flats in Wandsworth with 100 year plus lease were valued around £285,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease came to a finish in 2105. Having 79 years outstanding we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.
An example of a Freehold Enfranchisement case for a Wandsworth residence 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 related to 2 flats.