Unfortunately that a Upper Walthamstow residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Upper Walthamstow property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining dips below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Upper Walthamstow will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold residencies in Upper Walthamstow with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The lawyers that we work with handle Upper Walthamstow 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 lawyer we work with provide it.
Teddy was the the leasehold owner of a conversion flat in Upper Walthamstow being marketed with a lease of a little over 59 years outstanding. Teddy informally spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Teddy to exercise his statutory right. Teddy obtained expert advice and secured satisfactory deal informally and readily saleable.
In 2014 we were called by Dr Samuel Flores who, having acquired a first floor apartment in Upper Walthamstow in March 2002. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Identical properties in Upper Walthamstow with 100 year plus lease were in the region of £240,600. The mid-range ground rent payable was £60 billed annually. The lease ended in 2087. Having 62 years left we calculated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 plus professional charges.
An example of a Freehold Enfranchisement case for a Upper Walthamstow residence is 32 Howard Road in June 2012. the Tribunal held that premium payable for the freehold reversion should be £35,825 This case was in relation to 2 flats. The unexpired lease term was 64 years.