The closer a domestic lease in Wandsworth gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, more than 99 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending without delay. Many flat owners in Wandsworth will qualify for this right; that being said a lawyer can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Wandsworth with more than one hundred years remaining 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 to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 procure professional help from a lawyer and valuer with experience in this area.
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 dealing with Wandsworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted discussions with the landlord of her purpose-built flat in Wandsworth, Imogen initiated the lease extension process as the 80 year mark was swiftly nearing. The transaction completed in June 2006. The landlord’s charges were kept to an absolute minimum.
Last Autumn we were phoned by Dr W Cox , who acquired a ground floor apartment in Wandsworth in April 2006. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Similar flats in Wandsworth with 100 year plus lease were valued about £183,600. The mid-range amount of ground rent was £65 collected per annum. The lease expired on 10 July 2083. Given that there were 57 years left we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including fees.
An example of a Freehold Enfranchisement matter before the tribunal 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 related to 2 flats.