Upper Walthamstow leases on residential deteriorating in value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. If lease term is under eighty years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Upper Walthamstow will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain circumstances you may not qualify. There are also strict timetables and procedures to comply with once the process has started so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Upper Walthamstow with over 100 years left on the lease are sometimes 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 purchasing the freehold unless savings on ground rent and maintenance charges justify 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Upper Walthamstow can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in lease extensions.
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 a wealth of experience dealing with Upper Walthamstow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Jack, came very near to the 80-year mark with the lease on his studio flat in Upper Walthamstow. Having purchased his flat 19 years previously, the lease term was of minimal interest. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Jack extended the lease at the eleventh hour in April. Jack and the freeholder via the management company subsequently agreed on a premium of £6,000 . If the lease had slipped to less than 80 years, the figure would have escalated by at least £1,025.
Last May we were contacted by Mr and Mrs. U Taylor , who owned a one bedroom apartment in Upper Walthamstow in June 1997. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Similar residencies in Upper Walthamstow with 100 year plus lease were valued around £223,400. The mid-range ground rent payable was £60 collected yearly. The lease termination date was in 2084. Taking into account 59 years unexpired we calculated the premium to the landlord for the lease extension to be within £27,600 and £31,800 exclusive of fees.
An example of a Freehold Enfranchisement decision for a Upper Walthamstow residence is 32 Howard Road in June 2012. the Tribunal held that premium payable for the freehold reversion should be £35,825 This case was in relation to 2 flats. The unexpired residue of the current lease was 64 years.