With a long leasehold premises in Waltham Abbey, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly once there are fewer than 80 years remaining. Residents in Waltham Abbey with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When the lease term has fewer than eighty years remaining, under the current statute the landlord is entitled to calculate and levy a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 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.
Half a year ago Jason, came perilously close to the eighty-year mark with the lease on his first floor flat in Waltham Abbey. In buying his flat 18 years ago, the unexpired term was of no importance. Fortunately, he realised he would soon be paying an inflated amount for Extending the lease. Jason was able to extend his lease just under the wire last April. Jason and the freeholder via the management company ultimately settled on the final figure of £5,500 . If he had missed the deadline, the amount would have gone up by at least £1,075.
In 2011 we were phoned by Dr Freya Cox who, having purchased a first floor apartment in Waltham Abbey in October 2004. We are asked if we could estimate the price could be for a ninety year extension to my lease. Identical homes in Waltham Abbey with 100 year plus lease were worth £300,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease elapsed on 9 January 2102. Taking into account 76 years remaining we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of fees.
An example of a Freehold Enfranchisement case 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 affected 2 flats. The number of years remaining on the existing lease(s) was 69.26 years.