For anyone whose Upper Walthamstow flat is held on a long lease, our message is clear – if no remedial action is taken, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be equivalent in value to 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. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Retaining our service gives you enhanced control over the value of your Upper Walthamstow leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Spring Ollie, started to get near to the eighty-year threshold with the lease on his two bedroom flat in Upper Walthamstow. In buying his property 18 years previously, the unexpired term was of no relevance. Luckily, he recognised he would imminently be paying an escalated premium for Extending the lease. Ollie arranged for a lease extension at the eleventh hour in August. Ollie and the landlord who owned the flat above ultimately settled on sum of £5,000 . If the lease had slipped below 80 years, the amount would have gone up by a minimum £1,025.
In 2014 we were phoned by Mr and Mrs. D Cook who, having completed a garden flat in Upper Walthamstow in November 2011. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative premises in Upper Walthamstow with a long lease were valued about £240,600. The mid-range amount of ground rent was £60 invoiced monthly. The lease expired in 2088. Considering the 62 years remaining we estimated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of costs.
An example of a Freehold Enfranchisement decision for a Upper Walthamstow residence is 32 Howard Road in June 2012. the Tribunal held that premium payable for the freehold reversion should be £35,825 This case was in relation to 2 flats. The unexpired lease term was 64 years.