The nearer a domestic lease in Chingford nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over one hundred years remaining then this decrease may be fractional however there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in Chingford will qualify for this right; however a lawyer can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with in excess of 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 in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Chingford leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Logan, came perilously close to the eighty-year mark with the lease on his studio flat in Chingford. Having bought his home two decades ago, the unexpired term was of minimal relevance. by good luck, he became aware that he needed to take action soon on a lease extension. Logan extended the lease at the eleventh hour last May. Logan and the landlord who owned the flat above subsequently agreed on sum of £5,500 . If he failed to meet the deadline, the figure would have increased by at least £950.
In 2013 we were phoned by Mr Kyle Mercier who, having bought a studio apartment in Chingford in June 1995. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Similar homes in Chingford with a long lease were in the region of £261,600. The mid-range ground rent payable was £60 billed yearly. The lease came to a finish on 22 September 2078. Given that there were 52 years outstanding we approximated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 exclusive of professional charges.
An example of a Freehold Enfranchisement decision for a Chingford property 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 was in relation to 2 flats. The unexpired term as at the valuation date was 69.26 years.