There is no doubt about it a leasehold flat or house in Waltham Abbey is a wasting asset as a result of the shortening lease. If the residual term has, over 125 years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner rather than later. Most flat owners in Waltham Abbey will meet the qualifying criteria; nevertheless a conveyancer can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Waltham Abbey with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with handle 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.
Last Summer Charlie, came critically near to the 80-year threshold with the lease on his one bedroom apartment in Waltham Abbey. Having bought his home two decades ago, the length of the lease was of minimal concern. Luckily, he noticed he needed to take steps soon on Extending the lease. Charlie was able to extend his lease just under the wire in June. Charlie and the landlord who owned the flat above subsequently agreed on an amount of £5,500 . If he failed to meet the deadline, the sum would have increased by at least £850.
Last Summer we were phoned by Mrs Sarah Peterson , who was assigned a lease of a recently refurbished apartment in Waltham Abbey in September 1996. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative homes in Waltham Abbey with 100 year plus lease were valued around £240,600. The mid-range ground rent payable was £60 collected annually. The lease elapsed in 2087. Given that there were 62 years outstanding we estimated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 not including costs.
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 related to 2 flats. The remaining number of years on the lease was 69.26 years.