With a residential leasehold property in Waltham Abbey, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are less than eighty years remaining. Residents in Waltham Abbey with a lease nearing 81 years unexpired should seriously think of extending it sooner than later. Once the lease term has under 80 years remaining, under the relevant legislation the freeholder is entitled to calculate and levy a larger amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Waltham Abbey with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| 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 75 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Waltham Abbey 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.
Adam owned a studio apartment in Waltham Abbey on the market with a lease of fraction over sixty years remaining. Adam on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Adam to invoke his statutory right. Adam procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.
Last month we were approach by Dr R Torres , who moved into a studio apartment in Waltham Abbey in October 1995. The dilemma was if we could approximate the premium would be to extend the lease by 90 years. Comparable flats in Waltham Abbey with 100 year plus lease were in the region of £198,800. The average amount of ground rent was £55 collected yearly. The lease concluded on 6 February 2081. Having 55 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Waltham Abbey flat 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 residue of the current lease was 69.26 years.