As the the remaining lease term of a Upper Walthamstow domestic lease diminished so does its value and therefore the value of your property. Where the lease has, over one hundred years to run then this decrease may be fractional that being said there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner as opposed to later. Most flat owners in Upper Walthamstow will qualify for this right; however a conveyancer should be able to advise whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent 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 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancers that we work with undertake Upper Walthamstow lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
During the course of the last few months Gabriel, started to get near to the 80-year threshold with the lease on his purpose- built flat in Upper Walthamstow. Having purchased his property 18 years previously, the lease term was of no concern. Fortunately, he recognised he needed to take action soon on Extending the lease. Gabriel was able to extend his lease just in the nick of time last August. Gabriel and the landlord who owned the flat above ultimately agreed on a premium of £5,000 . If the lease had dropped below 80 years, the amount would have escalated by a minimum £975.
Last April we were e-mailed by Mr and Mrs. A Edwards , who moved into a one bedroom apartment in Upper Walthamstow in November 2011. The dilemma was if we could estimate the price could be to prolong the lease by ninety years. Comparative flats in Upper Walthamstow with 100 year plus lease were worth £216,000. The mid-range amount of ground rent was £60 billed quarterly. The lease ended on 12 June 2083. Having 58 years outstanding we estimated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of legals.
An example of a Freehold Enfranchisement case for a Upper Walthamstow flat is 32 Howard Road in June 2012. the Tribunal held that premium payable for the freehold reversion should be £35,825 This case affected 2 flats. The number of years remaining on the existing lease(s) was 64 years.