The re-sale value of a leasehold property in New Waltham depends on how many years the lease has remaining. If it is near to or fewer than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that formalities can be addressed well before the 80 year cut off point. Statute entitles New Waltham qualifying lessees to obtain a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in New Waltham with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Using our service gives you better control over the value of your New Waltham leasehold, as your property will be more valuable and saleable in respect of 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.
In the wake of 9 months of protracted correspondence with the landlord of her garden flat in New Waltham, Alice commenced the lease extension process as the 80 year threshold was swiftly nearing. The transaction completed in January 2012. The freeholder’s charges were kept to an absolute minimum.
Dr Leo Díaz bought a garden apartment in New Waltham in June 2001. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Comparative residencies in New Waltham with an extended lease were worth £275,000. The mid-range ground rent payable was £55 collected every twelve months. The lease ran out on 8 November 2102. Given that there were 77 years as a residual term we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including professional charges.
In 2010 we were called by Dr Amy Wilson who, having acquired a one bedroom flat in New Waltham in January 2003. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable flats in New Waltham with an extended lease were valued around £183,600. The average ground rent payable was £65 billed quarterly. The lease elapsed in 2082. Given that there were 57 years as a residual term we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including expenses.