With a long leasehold property in Wimbledon, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are less than eighty years remaining. Leasehold owners in Wimbledon with a lease nearing 81 years left should seriously consider extending it sooner rather than later. When a lease has less than eighty years remaining, under the relevant statute the landlord is entitled to calculate and charge a greater amount, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Wimbledon with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 Wimbledon can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor 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 Wimbledon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aaron was the the leasehold owner of a studio flat in Wimbledon being marketed with a lease of a few days over 72 years unexpired. Aaron informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Aaron to exercise his statutory right. Aaron procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
In 2010 we were phoned by Mr Luca Jones who, having purchased a recently refurbished apartment in Wimbledon in May 2006. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Similar premises in Wimbledon with an extended lease were in the region of £240,600. The average amount of ground rent was £65 collected yearly. The lease termination date was on 4 October 2087. Having 62 years unexpired we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 not including fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Wimbledon flat is 629 Garratt Lane in September 2014. The consideration payable for the acquisition of the freehold of the subject property was the sum £21,302.74. This represented a valuation of the freehold in the sum of £23,864 from which the sum of £2561.27 has been deducted in respect of certain costs in repairing and insuring the premises This case affected 3 flats. The number of years remaining on the existing lease(s) was 72.94 years.