The only way is down when it comes to Waltham lease terms. Waltham leaseholds that have a remaining term shorter than eighty years will drop in value even faster, and the cost of extending your lease will rise.
Leasehold properties in Waltham with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Retaining our service gives you enhanced control over the value of your Waltham leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Ben, started to get close to the eighty-year mark with the lease on his basement flat in Waltham. Having purchased his home two decades ago, the length of the lease was of no interest. Luckily, he realised he would imminently be paying an escalated premium for Extending the lease. Ben was able to extend his lease at the eleventh hour in August. Ben and the freeholder via the management company eventually agreed on sum of £5,000 . If he had missed the deadline, the figure would have escalated by at least £1,125.
Ms N Ward was assigned a lease of a one bedroom flat in Waltham in May 1996. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Identical flats in Waltham with an extended lease were worth £233,200. The average amount of ground rent was £60 invoiced monthly. The lease concluded in 2086. Given that there were 61 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 plus costs.
In 2013 we were contacted by Dr I Peterson who, having completed a ground floor flat in Waltham in August 2010. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Identical flats in Waltham with an extended lease were valued around £166,800. The average amount of ground rent was £50 billed annually. The lease lapsed in 2075. Considering the 50 years outstanding we estimated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 plus fees.