South West London leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in South West London will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and steps to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.
Leasehold premises in South West London with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
Irrespective of whether you are a tenant or a landlord in South West London,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with South West London valuers.
Last Spring Nathaniel, started to get near to the 80-year threshold with the lease on his one bedroom apartment in South West London. In buying his flat two decades ago, the lease term was of minimal interest. Fortunately, he became aware that he needed to take steps soon on Extending the lease. Nathaniel was able to extend his lease at the eleventh hour in April. Nathaniel and the freeholder via the management company subsequently agreed on the final figure of £6,000 . If the lease had slipped below 80 years, the amount would have escalated by a minimum £1,025.
In 2009 we were contacted by Dr J Hill who, having took over the lease of a first floor flat in South West London in May 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparable residencies in South West London with 100 year plus lease were in the region of £265,200. The mid-range ground rent payable was £65 collected per annum. The lease elapsed in 2092. Taking into account 66 years outstanding we approximated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 not including professional charges.
An example of a Freehold Enfranchisement decision for a South West London residence is 78 & 80 Newport Road in January 2013. the Tribunal concluded that the premium to be paid by the leaseholder in respect of the freehold reversion is £23,105 This case related to 2 flats. The unexpired term was 71.63 years.