Why you should commence your Walthamstow lease extension

Why you should start your Walthamstow lease extension today:

A Walthamstow lease depreciates with the years remaining on the lease.

Walthamstow leases on domestic properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Walthamstow will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some cases you may not be entitled. There are prescribed deadlines and steps to comply with once the process is initiated so it’s prudent to be guided by a lawyer during the process.

Walthamstow property with a lease extension is almost the same value as a freehold

Leasehold residencies in Walthamstow with over 100 years left 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.

Mortgage lenders will not lend with a short lease

Nearly all mortgage companies will be unwilling to grant a mortgage on a lease with under seventy years unexpired - although this varies from lender to lender. A purchaser will undoubtedly encounter difficulties in obtaining a mortgage and this could result in your Walthamstow property becoming difficult to dispose of or to obtain finance on.

Why use us for your lease extension in Walthamstow?

Irrespective of whether you are a tenant or a landlord in Walthamstow,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Walthamstow valuers.

Walthamstow Lease Extension Case Summaries:

Charlie, Walthamstow, North East London,

Charlie owned a studio apartment in Walthamstow on the market with a lease of a few days over 59 years unexpired. Charlie informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Charlie to exercise his statutory right. Charlie obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.

Walthamstow case:

Mrs Rebecca Adams completed a one bedroom flat in Walthamstow in August 2002. The question was if we could estimate the price could be to extend the lease by a further 90 years. Similar homes in Walthamstow with an extended lease were valued about £235,200. The average amount of ground rent was £45 invoiced monthly. The lease finished in 2092. Given that there were 66 years left we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.