The market value of a leasehold property in Wanstead Flats is impacted by how many years the lease has left to run. If it is near to or fewer than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be concluded in advance of the 80 year threshold. Leasehold Reform legislation entitles Wanstead Flats qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Wanstead Flats with in excess of 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit 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 should be declined (see exception below). 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. |
| 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 |
| Yorkshire Building Society | 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. |
Lease extensions in Wanstead Flats can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Wanstead Flats lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted correspondence with the freeholder of her first floor flat in Wanstead Flats, Isobel started the lease extension process just as her lease was approaching the crucial eighty-year mark. The lease extension was finalised in February 2013. The freeholder’s costs were kept to an absolute minimum.
Dr Amy Sharif acquired a ground floor flat in Wanstead Flats in October 2007. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar flats in Wanstead Flats with an extended lease were in the region of £285,000. The average amount of ground rent was £55 collected per annum. The lease terminated on 19 June 2106. Considering the 80 years remaining we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.
Dr Emma Allen bought a one bedroom flat in Wanstead Flats in February 2004. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Similar homes in Wanstead Flats with 100 year plus lease were valued around £200,800. The mid-range ground rent payable was £65 billed yearly. The lease ended on 26 April 2086. Considering the 60 years remaining we estimated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 not including expenses.