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Why you should start your Waltham Abbey lease extension


Top reasons for lease extension now:

A Waltham Abbey lease depreciates with the years remaining on the lease.

Unfortunately that a Waltham Abbey residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Waltham Abbey property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be payable. Most leasehold owners in Waltham Abbey will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.

Waltham Abbey property with a lease extension has roughly the same value as a freehold

It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.

Banks and Building Societies may decide not to issue a mortgage with a short lease

Most banks and building societies insist on a lengthy amount of time left on a leasehold property before they will contemplate it as adequate security. Regardless of whether you need a mortgage, you should be aware that it is probable that someone intending to purchase your property in the future might well do, so if they are not able to obtain a mortgage, then the market price of your property will likely be adversely impacted. Since 2008 the majority of banks and building societies have increased the required minimum lease length that they are prepared to lend on

Lender Requirement
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.
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.
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.

What makes us experts in Waltham Abbey lease extensions?

Lease extensions in Waltham Abbey can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in this area.

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 in-depth market knowledge 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.

Waltham Abbey Lease Extension Case Summaries:

Bethan, Waltham Abbey, Essex,

Off the back of unsuccessful correspondence with the freeholder of her basement flat in Waltham Abbey, Bethan started the lease extension process as the eighty year deadline was rapidly nearing. The legal work was finalised in July 2011. The landlord’s costs were restricted to less than four hundred GBP.

Waltham Abbey case:

In 2010 we were phoned by Dr Katherine Carter who, having was assigned a lease of a garden flat in Waltham Abbey in May 1999. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Similar residencies in Waltham Abbey with an extended lease were valued about £216,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease elapsed on 7 September 2083. Considering the 58 years as a residual term we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 plus legals.

Decision in Redbridge

An example of a Freehold Enfranchisement matter before the tribunal for a Waltham Abbey residence 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 related to 2 flats. The unexpired term was 69.26 years.