It’s a harsh truth that a Chingford residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Chingford property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term drops under eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Chingford will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold premises in Chingford with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Chingford can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Chingford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn William, came seriously close to the eighty-year threshold with the lease on his first floor apartment in Chingford. In buying his home 18 years ago, the length of the lease was of no interest. Fortunately, it dawned on him that he would imminently be paying way over the odds for a lease extension. William was able to extend his lease just in the nick of time last July. William and the freeholder via the management company ultimately agreed on the final figure of £5,000 . If he had missed the deadline, the figure would have increased by a minimum £1,150.
In 2014 we were phoned by Dr E Mercier who, having owned a first floor flat in Chingford in November 2001. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Identical properties in Chingford with a long lease were valued about £246,800. The mid-range amount of ground rent was £60 invoiced monthly. The lease finished in 2074. Given that there were 50 years outstanding we approximated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of expenses.
An example of a Freehold Enfranchisement decision for a Chingford 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 related to 2 flats. The unexpired term was 69.26 years.