Wanstead leases on residential deteriorating in value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Wanstead will mostly qualify for a lease extension; however a solicitor will check your eligibility. In some circumstances you may not be entitled. There are also strict deadlines and formalities to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Wanstead with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Wanstead leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Lewis was the the leasehold owner of a conversion flat in Wanstead on the market with a lease of just over fifty eight years unexpired. Lewis informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Lewis to invoke his statutory right. Lewis obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2009 we were called by Dr D Morgan who, having bought a one bedroom apartment in Wanstead in August 2000. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Identical properties in Wanstead with a long lease were valued about £181,600. The average amount of ground rent was £55 collected quarterly. The lease finished on 18 October 2077. Having 52 years as a residual term we approximated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of professional charges.
An example of a Freehold Enfranchisement decision for a Wanstead flat is 36 New Wanstead in August 2010. The Tribunal arrived at a valuation of the premium for the freehold of £22,359. This case affected 2 flats. The unexpired lease term was 73.92 years.