When it comes to long leasehold property in Waltham Abbey, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Leasehold owners in Waltham Abbey with a lease nearing 81 years remaining should seriously consider extending it sooner than later. When a lease has less than 80 years left, under the current statute the landlord is entitled to calculate and levy a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Waltham Abbey can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Waltham Abbey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Jacob, started to get near to the eighty-year mark with the lease on his garden apartment in Waltham Abbey. Having bought his home twenty years ago, the lease term was of no concern. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Jacob arranged for a lease extension just under the wire last August. Jacob and the landlord ultimately agreed on the final figure of £5,000 . If the lease had descended below 80 years, the price would have gone up by at least £975.
In 2012 we were approached by Mr and Mrs. I Patel who, having completed a one bedroom apartment in Waltham Abbey in February 2002. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative residencies in Waltham Abbey with an extended lease were valued around £257,800. The average amount of ground rent was £65 billed monthly. The lease expired on 11 May 2090. Taking into account 65 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 plus professional charges.
An example of a Freehold Enfranchisement decision for a Waltham Abbey premises is 201 & 201a St. Barnabas Road in October 2013. The Tribunal decided that the price to be paid by the Applicants for the freehold interest is £20,071. This case affected 2 flats. The unexpired term was 69.26 years.