It’s an underpublicised truth that a Wandsworth residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Wandsworth property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term dips below eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Wandsworth will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer throughout the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | 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 |
Regardless of whether you are a tenant or a freeholder in Wandsworth,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wandsworth valuers.
Off the back of lengthy discussions with the freeholder of her studio apartment in Wandsworth, Kirsty started the lease extension process just as the lease was approaching the crucial eighty-year deadline. The transaction was concluded in June 2009. The landlord’s charges were negotiated to less than 550 pounds.
In 2014 we were e-mailed by Dr M Flores who, having moved into a one bedroom flat in Wandsworth in July 2012. The question was if we could approximate the price could be to extend the lease by an additional years. Comparable residencies in Wandsworth with a long lease were in the region of £225,400. The average ground rent payable was £45 collected per annum. The lease terminated in 2089. Given that there were 64 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 exclusive of professional charges.
An example of a Freehold Enfranchisement decision for a Wandsworth premises 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.