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 your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Wandsworth residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Wandsworth you must check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Coventry Building Society | |
| Santander | |
| TSB |
Lease extensions in Wandsworth can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer 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 a wealth of experience procuring Wandsworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Dexter, started to get near to the eighty-year mark with the lease on his ground floor apartment in Wandsworth. In buying his home two decades ago, the lease term was of minimal relevance. As luck would have it, he realised he would imminently be paying way over the odds for Extending the lease. Dexter arranged for a lease extension just under the wire last August. Dexter and the landlord who owned the flat above eventually agreed on the final figure of £5,500 . If he failed to meet the deadline, the sum would have increased by at least £900.
Last Autumn we were e-mailed by Mr Jayden Vincent , who took over the lease of a ground floor apartment in Wandsworth in February 2011. The question was if we could estimate the price would likely be to prolong the lease by 90 years. Similar homes in Wandsworth with a long lease were valued about £225,400. The mid-range amount of ground rent was £45 invoiced monthly. The lease elapsed on 18 March 2090. Having 64 years left we calculated the compensation to the freeholder to extend the lease to be between £16,200 and £18,600 not including professional charges.
An example of a Freehold Enfranchisement decision 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 affected 2 flats.