Wandsworth leases on residential deteriorating in value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to be in place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be payable. Leasehold owners in Wandsworth will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In some situations you may not qualify. There are prescribed deadlines and procedures to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold properties in Wandsworth with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Wandsworth can be a difficult process. We recommend you get professional help from a lawyer and valuer with experience in this area.
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 a wealth of experience 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.
14 months ago Daniel, started to get close to the eighty-year mark with the lease on his two bedroom flat in Wandsworth. In buying his property twenty years ago, the unexpired term was of little significance. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Daniel was able to extend his lease just under the wire in September. Daniel and the landlord who owned the flat above eventually agreed on a premium of £5,000 . If the lease had slipped to less than 80 years, the amount would have gone up by at least £1,025.
Last Winter we were e-mailed by Mr Ibrahim Cooper , who owned a one bedroom flat in Wandsworth in October 2005. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Similar properties in Wandsworth with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £50 invoiced every twelve months. The lease end date was in 2099. Taking into account 73 years remaining we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.
An example of a Freehold Enfranchisement matter before the tribunal 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.