Waltham Forest leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Waltham Forest enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Waltham Forest you must investigate if your lease has between seventy and 90 years left. There are compelling reasons why a Waltham Forest leaseholder with a lease having around eighty years left should take action to make sure that a lease extension is actioned without delay
Leasehold residencies in Waltham Forest with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
Lease extensions in Waltham Forest can be a difficult process. We recommend you secure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience 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.
18 months ago Dylan, started to get near to the 80-year mark with the lease on his first floor flat in Waltham Forest. Having purchased his home two decades ago, the lease term was of minimal bearing. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Dylan was able to extend his lease just under the wire in July. Dylan and the landlord eventually settled on the final figure of £6,000 . If the lease had slid below 80 years, the figure would have increased by a minimum £875.
In 2012 we were phoned by Mr and Mrs. B Rodríguez who, having was assigned a lease of a one bedroom apartment in Waltham Forest in February 2010. The dilemma was if we could approximate the premium would be to extend the lease by 90 years. Comparable properties in Waltham Forest with 100 year plus lease were worth £295,000. The average ground rent payable was £45 invoiced annually. The lease finished on 27 October 2101. Having 75 years left we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.
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 affected 2 flats. The unexpired lease term was 64 years.