When it comes to residential leasehold property in Waltham Forest, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially once there are fewer than eighty years left. Anyone in Waltham Forest with a lease nearing 81 years left should seriously consider extending it sooner than later. Once the lease term has less than eighty years outstanding, under the current legislation the freeholder can calculate and charge a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Waltham Forest with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Waltham Forest can be a difficult process. We recommend you get guidance from a lawyer and surveyor 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 in-depth market knowledge dealing with Waltham Forest lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
John was the the leasehold owner of a conversion flat in Waltham Forest on the market with a lease of a few days over fifty eight years remaining. John informally approached his landlord a well known Manchester-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 subject to a rise in the rent to £100 annually. No ground rent would be due on a lease extension were John to exercise his statutory right. John obtained expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Mrs O Adams bought a one bedroom apartment in Waltham Forest in February 1998. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Comparable premises in Waltham Forest with a long lease were worth £275,000. The average amount of ground rent was £65 collected yearly. The lease elapsed in 2094. Taking into account 68 years remaining we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including costs.
An example of a Freehold Enfranchisement case for a Waltham Forest flat is 32 Howard Road in June 2012. the Tribunal held that premium payable for the freehold reversion should be £35,825 This case was in relation to 2 flats. The unexpired term as at the valuation date was 64 years.