Unfortunately that a Walthamstow 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 early years due to the loss of value being disguised by increases in the Walthamstow property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining dips below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Walthamstow will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold residencies in Walthamstow with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Irrespective of whether you are a tenant or a freeholder in Walthamstow,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Walthamstow valuers.
16 months ago Joseph, started to get near to the 80-year threshold with the lease on his ground floor apartment in Walthamstow. Having bought his property two decades ago, the lease term was of minimal importance. Fortunately, he realised he would imminently be paying an escalated premium for Extending the lease. Joseph was able to extend his lease at the eleventh hour in July. Joseph and the freeholder via the management company in the end agreed on a premium of £5,000 . If he failed to meet the deadline, the sum would have escalated by a minimum £1,000.
In 2013 we were approached by Mrs Catherine Bennett who, having moved into a one bedroom flat in Walthamstow in May 2005. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Identical homes in Walthamstow with 100 year plus lease were in the region of £260,000. The average amount of ground rent was £50 billed monthly. The lease terminated on 15 August 2098. Given that there were 72 years outstanding we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Walthamstow flat is 12 Nutfield Road in July 2014. the Tribunal judged that the price to be paid by the applicants for the freehold interest should be £19,572 This case affected 2 flats. The remaining number of years on the lease was 72.02 years.