There is no doubt about it a leasehold flat or house in Wandsworth is a wasting asset as a result of the shortening lease. If the residual term has, in excess of 100 years to run then this decrease may be fractional that being said there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Wandsworth will qualify for this right; nevertheless a conveyancing solicitor can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent 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 decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Wandsworth,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wandsworth valuers.
Aarav owned a studio apartment in Wandsworth on the market with a lease of fraction over 72 years unexpired. Aarav on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Aarav to exercise his statutory right. Aarav obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
Last month we were phoned by Mr and Mrs. H Young , who acquired a studio flat in Wandsworth in November 2005. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparable premises in Wandsworth with an extended lease were in the region of £208,200. The average amount of ground rent was £65 invoiced quarterly. The lease ended on 11 July 2087. Taking into account 61 years remaining we estimated the premium to the landlord for the lease extension to be within £20,000 and £23,000 not including costs.
An example of a Freehold Enfranchisement decision 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 affected 2 flats.