The re-sale value of a leasehold property in Wanstead depends on how many years the lease has left to run. If it is close to or less than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to start the lease extension process when the lease still has 82 years to run so that formalities can be finalised prior to the 80 year cut off point. Current legislation enables Wanstead qualifying lessees to an additional term of 90 years over and above the remaining term, at a notional rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Wanstead with more than 100 years left on the lease are sometimes 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 freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Wanstead lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Half a year ago Aaron, started to get close to the 80-year mark with the lease on his one bedroom apartment in Wanstead. In buying his flat two decades ago, the lease term was of minimal bearing. Luckily, it dawned on him that he would soon be paying way over the odds for a lease extension. Aaron was able to extend his lease just ahead of time last July. Aaron and the landlord who owned the flat above subsequently settled on an amount of £5,000 . If he not met the deadline, the sum would have escalated by a minimum £1,050.
In 2009 we were called by Dr Bethany Bernard who, having was assigned a lease of a basement apartment in Wanstead in June 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar residencies in Wanstead with a long lease were worth £213,600. The average amount of ground rent was £60 billed yearly. The lease terminated in 2082. Considering the 57 years unexpired we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including legals.
An example of a Freehold Enfranchisement case for a Wanstead premises is 36 New Wanstead in August 2010. The Tribunal arrived at a valuation of the premium for the freehold of £22,359. This case was in relation to 2 flats. The remaining number of years on the lease was 73.92 years.