Walthamstow residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
Leasehold premises in Walthamstow with more than one hundred years unexpired on the lease are sometimes 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 purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Engaging our service will provide you better control over the value of your Walthamstow leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of lengthy correspondence with the landlord of her first floor apartment in Walthamstow, Katie commenced the lease extension process just as her lease was approaching the all-important eighty-year mark. The lease extension was concluded in October 2010. The freeholder’s costs were kept to an absolute minimum.
Ms Grace Ali completed a one bedroom apartment in Walthamstow in November 2009. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Comparative premises in Walthamstow with an extended lease were valued about £285,000. The average ground rent payable was £55 collected per annum. The lease terminated on 24 April 2105. Having 80 years remaining we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including costs.
An example of a Freehold Enfranchisement case for a Walthamstow property 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 was in relation to 2 flats. The remaining number of years on the lease was 72.02 years.