It’s an underpublicised truth that a Waltham Abbey residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Waltham Abbey property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining drops under eighty years, you will then be required to pay 50% 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 The majority of leasehold owners in Waltham Abbey will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Waltham Abbey leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Luke, came dangerously near to the 80-year threshold with the lease on his one bedroom apartment in Waltham Abbey. Having purchased his home 18 years previously, the length of the lease was of no interest. Thankfully, he recognised he needed to take action soon on Extending the lease. Luke was able to extend his lease just under the wire in June. Luke and the landlord in the end settled on an amount of £6,000 . If the lease had slid below 80 years, the sum would have increased by a minimum £1,150.
Last year we were phoned by Dr Nathaniel Roberts , who owned a recently refurbished flat in Waltham Abbey in April 2011. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparative flats in Waltham Abbey with an extended lease were worth £223,400. The mid-range ground rent payable was £60 collected quarterly. The lease elapsed on 22 July 2085. Taking into account 59 years unexpired we estimated the premium to the landlord for the lease extension to be between £27,600 and £31,800 exclusive of costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Waltham Abbey premises is 201 & 201a St. Barnabas Road in October 2013. The Tribunal decided that the price to be paid by the Applicants for the freehold interest is £20,071. This case affected 2 flats. The number of years remaining on the existing lease(s) was 69.26 years.