Unfortunately that a Waltham Forest residential lease is a deteriorating 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 depreciation being disguised by increases in the Waltham Forest property prices.Where your lease has approximately 90 years left, you need to start thinking about 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 slips below 80 years - otherwise a higher premium will be due. The majority of flat owners in Waltham Forest will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Leeds Building Society | |
| Virgin | |
| Yorkshire Building Society |
The conveyancers that we work with handle Waltham Forest 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 lawyer we work with provide it.
14 months ago Aiden, came critically close to the 80-year mark with the lease on his first floor flat in Waltham Forest. In buying his home two decades ago, the length of the lease was of little importance. Luckily, he noticed he would imminently be paying an escalated premium for a lease extension. Aiden was able to extend his lease just ahead of time in March. Aiden and the landlord who owned the flat above subsequently agreed on an amount of £6,000 . If the lease had slipped lower than eighty years, the premium would have escalated by at least £900.
Dr Muhammad Mitchell acquired a studio flat in Waltham Forest in February 2006. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Identical flats in Waltham Forest with 100 year plus lease were valued around £210,000. The average ground rent payable was £50 invoiced monthly. The lease termination date was in 2106. Given that there were 80 years unexpired we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.
An example of a Freehold Enfranchisement matter before the tribunal 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 was in relation to 2 flats. The unexpired term was 64 years.