The value of Wandsworth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the remaining term is less than 80 years
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Wandsworth can be a difficult process. We recommend you get guidance from a lawyer and surveyor 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 in-depth market knowledge 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.
18 months ago Austin, came perilously near to the eighty-year threshold with the lease on his garden apartment in Wandsworth. Having bought his property 19 years ago, the lease term was of minimal importance. Fortunately, he became aware that he needed to take action soon on Extending the lease. Austin was able to extend his lease just ahead of time in March. Austin and the landlord subsequently agreed on an amount of £6,000 . If the lease had dipped below eighty years, the premium would have increased by a minimum £950.
Dr F Nguyen purchased a first floor apartment in Wandsworth in March 2011. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Comparative homes in Wandsworth with an extended lease were worth £173,800. The average ground rent payable was £60 collected quarterly. The lease lapsed in 2080. Given that there were 55 years remaining we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of legals.
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.