The nearer a residential lease in Wapping gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, beyond 99 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Many flat owners in Wapping will meet the qualifying criteria; that being said a conveyancing solicitor will be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Barnsley Building Society | |
| Coventry Building Society | |
| Yorkshire Building Society |
Lease extensions in Wapping can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer 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 Wapping lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Ibrahim, started to get near to the 80-year threshold with the lease on his garden apartment in Wapping. Having bought his flat 19 years previously, the length of the lease was of little importance. Fortunately, he became aware that he needed to take action soon on Extending the lease. Ibrahim was able to extend his lease at the eleventh hour in July. Ibrahim and the freeholder via the management company eventually settled on the final figure of £5,500 . If the lease had slid lower than eighty years, the amount would have increased by a minimum £900.
In 2013 we were called by Mr and Mrs. F Simon who, having completed a ground floor apartment in Wapping in October 1996. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparative flats in Wapping with a long lease were valued about £264,000. The mid-range ground rent payable was £60 collected every twelve months. The lease ran out on 24 July 2079. Having 53 years left we estimated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 not including fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Wapping premises is 1-41 Royal Tower Lodge 40 Cartwright Street in April 2013. the tribunal adding the agreed value of capitalised ground rents and the reversion the price to be paid for the freehold was £1,187,000 This case was in relation to 41 flats. The number of years remaining on the existing lease(s) was 107 years.