The market value of Wanstead leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the unexpired lease term is below than eighty years
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Wanstead lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Two years ago Hunter, started to get close to the 80-year mark with the lease on his basement flat in Wanstead. In buying his home two decades ago, the unexpired term was of no interest. Fortunately, he realised he needed to take action soon on a lease extension. Hunter was able to extend his lease at the eleventh hour in September. Hunter and the landlord ultimately agreed on a premium of £6,000 . If he failed to meet the deadline, the figure would have increased by at least £1,075.
In 2013 we were called by Mr and Mrs. W Nguyen who, having moved into a studio flat in Wanstead in July 1999. We are asked if we could estimate the premium would be to extend the lease by an additional years. Similar premises in Wanstead with a long lease were valued about £267,600. The mid-range amount of ground rent was £65 billed quarterly. The lease expiry date was in 2092. Given that there were 67 years remaining we estimated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 not including expenses.
An example of a Freehold Enfranchisement case for a Wanstead premises is 36 New Wanstead in August 2010. The Tribunal arrived at a valuation of the premium for the freehold of £22,359. This case was in relation to 2 flats. The remaining number of years on the lease was 73.92 years.