Upper Walthamstow residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors 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 conveyancing solicitor we work with provide it.
16 months ago David, started to get near to the eighty-year threshold with the lease on his garden flat in Upper Walthamstow. In buying his property two decades ago, the length of the lease was of little interest. by good luck, he became aware that he needed to take action soon on a lease extension. David extended the lease just under the wire in September. David and the landlord who owned the flat above eventually settled on a premium of £6,000 . If he not met the deadline, the figure would have become more costly by a minimum £875.
Last September we were e-mailed by Mr and Mrs. I Parker , who owned a studio flat in Upper Walthamstow in July 2009. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar properties in Upper Walthamstow with an extended lease were worth £191,400. The average amount of ground rent was £55 billed annually. The lease ended on 1 February 2080. Considering the 54 years outstanding we calculated the compensation to the landlord to extend the lease to be within £34,200 and £39,600 plus expenses.
An example of a Freehold Enfranchisement decision 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 remaining number of years on the lease was 64 years.