When it comes to residential leasehold property in Wandsworth, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Leasehold owners in Wandsworth with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has under eighty years left, under the relevant legislation the freeholder can calculate and charge a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Wandsworth with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors 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.
Last year Oliver, came perilously close to the eighty-year threshold with the lease on his basement apartment in Wandsworth. Having purchased his home two decades ago, the lease term was of minimal relevance. Luckily, he noticed he needed to take steps soon on Extending the lease. Oliver arranged for a lease extension just in the nick of time in September. Oliver and the landlord in the end settled on an amount of £5,500 . If the lease had dipped to less than eighty years, the figure would have gone up by a minimum £950.
Ms S Howard acquired a first floor flat in Wandsworth in September 2001. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparable properties in Wandsworth with an extended lease were valued around £255,000. The average ground rent payable was £50 billed yearly. The lease terminated in 2097. Taking into account 71 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.
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 was in relation to 2 flats.