Chances are that if you own a flat in Waltham Abbey you actually own a long leasehold interest over your property
Leasehold properties in Waltham Abbey with over one hundred years unexpired 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 purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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The conveyancers that we work with procure Waltham Abbey 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.
Aarav was the the leasehold owner of a 2 bedroom flat in Waltham Abbey being marketed with a lease of a few days over 61 years unexpired. Aarav informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Aarav to exercise his statutory right. Aarav obtained expert advice and secured an acceptable deal informally and readily saleable.
In 2011 we were called by Dr Connor Collins who, having took over the lease of a studio flat in Waltham Abbey in July 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Comparable flats in Waltham Abbey with 100 year plus lease were in the region of £189,000. The mid-range ground rent payable was £55 invoiced yearly. The lease termination date was on 13 March 2079. Having 53 years left we approximated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Waltham Abbey premises 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 was 69.26 years.