Waltham Forest leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Waltham Forest residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Waltham Forest you would be well advised to investigate if your lease has between 70 and 90 years left. There are compelling reasons why a Waltham Forest leaseholder with a lease having around eighty years unexpired should take steps to ensure that a lease extension is put in place without delay
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Waltham Forest,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Waltham Forest valuers.
Two years ago Seth, came precariously close to the eighty-year threshold with the lease on his purpose- built apartment in Waltham Forest. Having purchased his home two decades ago, the lease term was of little importance. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Seth was able to extend his lease at the eleventh hour last June. Seth and the freeholder via the managing agents eventually settled on the final figure of £5,500 . If he not met the deadline, the amount would have gone up by a minimum £1,125.
Dr G King took over the lease of a studio apartment in Waltham Forest in May 2010. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Comparative residencies in Waltham Forest with 100 year plus lease were in the region of £201,200. The average ground rent payable was £55 invoiced monthly. The lease lapsed on 10 October 2082. Having 56 years remaining we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including professional charges.
An example of a Freehold Enfranchisement decision for a Waltham Forest property 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 was 64 years.