Upper Walthamstow leases on residential properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the current lease drops under eighty years - otherwise a higher premium will be due. Flat owners in Upper Walthamstow will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In certain situations you may not be entitled. There are prescribed deadlines and procedures to comply with once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| Yorkshire 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. |
Using 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 wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ryan owned a conversion apartment in Upper Walthamstow being marketed with a lease of just over fifty eight years left. Ryan on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Ryan to invoke his statutory right. Ryan procured expert advice and secured an acceptable deal informally and readily saleable.
Last Winter we were called by Mr and Mrs. P Peterson , who took over the lease of a recently refurbished apartment in Upper Walthamstow in May 2002. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparable homes in Upper Walthamstow with 100 year plus lease were in the region of £285,000. The average ground rent payable was £45 invoiced quarterly. The lease concluded on 2 June 2097. Taking into account 71 years as a residual term we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of costs.
An example of a Freehold Enfranchisement decision 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 unexpired term as at the valuation date was 64 years.