Wandsworth leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Wandsworth enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Wandsworth you must investigate if your lease has between 70 and 90 years left. There are good reasons why a Wandsworth leaseholder with a lease having around 80 years left should take steps to make sure that a lease extension is put in place without delay
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
|Barnsley Building Society||60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.|
|Chelsea 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.|
|Leeds Building Society||85 years remaining from the start of the mortgage.|
|TSB||Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.|
|Royal Bank of Scotland||Mortgage term plus 30 years.|
Engaging our service gives you better control over the value of your Wandsworth leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Ollie, came dangerously close to the eighty-year threshold with the lease on his one bedroom apartment in Wandsworth. Having bought his flat twenty years ago, the lease term was of little significance. As luck would have it, it dawned on him that he needed to take steps soon on Extending the lease. Ollie extended the lease at the eleventh hour last June. Ollie and the landlord who owned the flat above ultimately agreed on an amount of £5,000 . If the lease had descended below eighty years, the figure would have increased by at least £975.
In 2011 we were approached by Dr Eliot Morris who, having completed a purpose-built apartment in Wandsworth in August 2001. The dilemma was if we could approximate the price would be to prolong the lease by an additional years. Comparable homes in Wandsworth with an extended lease were in the region of £260,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease end date was on 28 September 2095. Taking into account 72 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
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 related to 2 flats.