Chingford leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Chingford enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Chingford you must check if your lease has between seventy and 90 years left. There are compelling reasons why a Chingford flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is effected without delay
Leasehold properties in Chingford with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
Lender | Requirement |
---|---|
Halifax | Minimum 70 years from the date 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. |
Royal Bank of Scotland | Mortgage term plus 30 years. |
Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Yorkshire 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. |
Regardless 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.
Oscar owned a 2 bedroom apartment in Chingford being marketed with a lease of a few days over 72 years outstanding. Oscar informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Oscar to exercise his statutory right. Oscar procured expert legal guidance and secured an acceptable resolution informally and sell the property.
Last month we were phoned by Ms Shannon Hill , who owned a one bedroom flat in Chingford in February 2006. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Identical residencies in Chingford with 100 year plus lease were worth £264,000. The average ground rent payable was £60 invoiced every twelve months. The lease expired on 10 September 2077. Taking into account 53 years left we estimated the premium to the landlord for the lease extension to be within £37,100 and £42,800 not including legals.
An example of a Freehold Enfranchisement matter before the tribunal 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 related to 2 flats. The remaining number of years on the lease was 69.26 years.