Wanstead leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Wanstead residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Wanstead you must investigate if your lease has between 70 and ninety years remaining. There are good reasons why a Wanstead flat owner with a lease having around 80 years left should take action to make sure that a lease extension is put in place without delay
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date 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 |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Wanstead,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wanstead valuers.
Trailing protracted discussions with the landlord of her first floor apartment in Wanstead, Imogen initiated the lease extension process just as the lease was approaching the critical eighty-year threshold. The transaction was finalised in April 2012. The landlord’s costs were restricted to less than 600 pounds.
Last Summer we were phoned by Mr and Mrs. K Baker , who owned a one bedroom flat in Wanstead in January 2012. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Comparative residencies in Wanstead with 100 year plus lease were worth £240,600. The average ground rent payable was £65 collected annually. The lease terminated on 1 September 2086. Having 62 years unexpired we estimated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Wanstead residence 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 unexpired lease term was 73.92 years.