When it comes to long leasehold property in Upper Walthamstow, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than 80 years remaining. Residents in Upper Walthamstow with a lease nearing 81 years unexpired should seriously think of extending it sooner as opposed to later. Once the lease term has less than 80 years left, under the relevant legislation the landlord is entitled to calculate and demand a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service gives you better control over the value of your Upper Walthamstow leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Reuben was the the leasehold proprietor of a conversion apartment in Upper Walthamstow on the market with a lease of a few days over 59 years left. Reuben informally contacted his freeholder a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be due on a lease extension were Reuben to invoke his statutory right. Reuben procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2012 we were approached by Mr Eliot García who, having acquired a one bedroom flat in Upper Walthamstow in June 2012. We are asked if we could approximate the premium would be for a ninety year lease extension. Similar premises in Upper Walthamstow with 100 year plus lease were worth £267,600. The mid-range ground rent payable was £65 billed monthly. The lease expired in 2092. Given that there were 67 years remaining we approximated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 exclusive of professional charges.
An example of a Freehold Enfranchisement case for a Upper Walthamstow premises 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 unexpired term as at the valuation date was 64 years.