It’s a harsh certainty that a Chingford residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Chingford property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term drops under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Chingford will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.
Leasehold premises in Chingford with over 100 years outstanding on the lease are sometimes referred to as ‘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 purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Chingford,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chingford valuers.
In the wake of eight months of unsuccessful negotiations with the landlord of her garden apartment in Chingford, Courtney initiated the lease extension process as the eighty year mark was rapidly advancing. The lease extension was concluded in July 2013. The freeholder’s fees were restricted to slightly above 650 GBP.
In 2009 we were called by Mr O Gómez who, having was assigned a lease of a basement flat in Chingford in November 1999. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Similar flats in Chingford with a long lease were valued about £270,000. The average ground rent payable was £55 billed annually. The lease ran out on 26 April 2100. Considering the 75 years as a residual term we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.
An example of a Freehold Enfranchisement decision for a Chingford residence is 201 & 201a St. Barnabas Road in October 2013. The Tribunal decided that the price to be paid by the Applicants for the freehold interest is £20,071. This case was in relation to 2 flats. The unexpired term as at the valuation date was 69.26 years.