When it comes to residential leasehold premises in Wanstead, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are less than 80 years remaining. Leasehold owners in Wanstead with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has fewer than 80 years remaining, under the current Act the freeholder is entitled to calculate and charge a greater amount, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 can be a difficult process. We recommend you procure guidance from a conveyancer 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 procuring Wanstead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Jonathan, started to get close to the eighty-year mark with the lease on his one bedroom apartment in Wanstead. In buying his home twenty years previously, the unexpired term was of little concern. by good luck, he noticed he would soon be paying an inflated amount for a lease extension. Jonathan arranged for a lease extension at the eleventh hour last September. Jonathan and the freeholder eventually settled on the final figure of £5,000 . If the lease had slid to less than 80 years, the premium would have increased by a minimum £925.
In 2009 we were contacted by Ms N Lewis who, having purchased a one bedroom flat in Wanstead in May 2007. The question was if we could approximate the price would be to extend the lease by a further 90 years. Comparative residencies in Wanstead with a long lease were worth £295,000. The mid-range ground rent payable was £45 billed monthly. The lease came to a finish on 28 October 2100. Taking into account 74 years unexpired we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Wanstead property is 36 New Wanstead in August 2010. The Tribunal arrived at a valuation of the premium for the freehold of £22,359. This case related to 2 flats. The unexpired term as at the valuation date was 73.92 years.