Why you should commence your Wandsworth lease extension

Why you should commence your Wandsworth lease extension today:

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

With a domestic leasehold premises in Wandsworth, you are actually buying an entitlement to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than 80 years remaining. Residents in Wandsworth with a lease approaching 81 years left should seriously think of extending it without delay. Once a lease has less than 80 years outstanding, under the current legislation the freeholder is entitled to calculate and demand a larger amount, assessed on a technical multiplication, known as “marriage value” which is due.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.

Mortgage lenders may decide not to lend on a short lease

Banks and Building Societies have set criteria when loaning funds secured on leasehold homes. Some will simply refrain from lending at all once the remaining lease term falls lower than a specified unexpired lease term. Many Mortgage lenders will not consider property with an unexpired below seventy years suitable security. In addition to impacting your ability to sell, it is also relevant where you are wanting to refinance your Wandsworth property.

Why use us for your lease extension in Wandsworth?

The lawyers that we work with undertake 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 conveyancing solicitor we work with provide it.

Wandsworth Lease Extension Case Studies:

Laura, Wandsworth, South West London,

Following lengthy discussions with the freeholder of her basement apartment in Wandsworth, Laura commenced the lease extension process as the 80 year mark was rapidly advancing. The transaction was finalised in February 2008. The freeholder’s fees were negotiated to below 600 pounds.

Wandsworth case:

Last year we were called by Mr and Mrs. O Cox , who acquired a one bedroom apartment in Wandsworth in January 2005. The dilemma was if we could estimate the premium could be to extend the lease by a further 90 years. Similar premises in Wandsworth with a long lease were in the region of £245,000. The mid-range ground rent payable was £50 collected annually. The lease ran out on 5 July 2094. Taking into account 68 years remaining we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.