Chingford leases on residential deteriorating in value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. If lease term is less than 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 extra value that a lease extension will add to the property. Flat owners in Chingford will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some circumstances you may not be entitled. There are also strict deadlines and steps to comply with once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in Chingford with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Irrespective of whether you are a tenant or a landlord in Chingford,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chingford valuers.
Trailing lengthy negotiations with the freeholder of her studio flat in Chingford, Caitlin commenced the lease extension process as the eighty year deadline was fast advancing. The legal work completed in September 2009. The freeholder’s charges were negotiated to under 650 GBP.
In 2010 we were called by Mr and Mrs. E Taylor who, having was assigned a lease of a purpose-built flat in Chingford in July 2003. The question was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Similar residencies in Chingford with a long lease were worth £265,000. The mid-range amount of ground rent was £50 billed monthly. The lease end date was on 19 April 2098. Taking into account 73 years remaining we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
An example of a Freehold Enfranchisement decision for a Chingford residence 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 unexpired lease term was 69.26 years.