There is no doubt about it a leasehold flat or house in Waltham is a wasting asset as a result of the diminishing lease term. If the lease has, more than 125 years to run then this decrease may be negligible however there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending without delay. Many flat owners in Waltham will meet the qualifying criteria; however a conveyancer will be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your Waltham leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Hugo owned a 2 bedroom apartment in Waltham being sold with a lease of fraction over fifty eight years outstanding. Hugo on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Hugo to invoke his statutory right. Hugo obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
Mr Elijah Allen completed a studio apartment in Waltham in August 2009. The question was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical residencies in Waltham with 100 year plus lease were valued about £216,000. The mid-range ground rent payable was £60 collected every twelve months. The lease terminated in 2084. Given that there were 58 years unexpired we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including expenses.
Dr H Davis took over the lease of a purpose-built apartment in Waltham in July 2011. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparative flats in Waltham with an extended lease were in the region of £200,000. The mid-range amount of ground rent was £50 collected quarterly. The lease terminated in 2104. Given that there were 78 years remaining we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.