The re-sale value of a leasehold property in Waltham depends on how many years the lease has left to run. If it is near to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to start the lease extension process when the lease still has 82 years remaining so that a lease extension can be addressed prior to the eighty year mark. Leasehold Reform legislation enables Waltham qualifying lessees to acquire a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Waltham,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Waltham valuers.
Max owned a studio flat in Waltham being marketed with a lease of a little over fifty eight years left. Max on an informal basis approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Max to exercise his statutory right. Max obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Mr Blake Rose was assigned a lease of a garden apartment in Waltham in August 2005. We are asked if we could estimate the premium would be to extend the lease by ninety years. Similar properties in Waltham with a long lease were worth £174,200. The average amount of ground rent was £55 invoiced monthly. The lease terminated on 4 January 2077. Having 51 years remaining we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus legals.
In 2010 we were e-mailed by Mrs G King who, having was assigned a lease of a one bedroom flat in Waltham in March 2007. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Similar flats in Waltham with an extended lease were valued about £285,000. The average amount of ground rent was £45 collected quarterly. The lease ran out in 2097. Given that there were 71 years outstanding we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.