The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Watchet have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. Please give careful consideration before delaying your Watchet lease extension. Postponing that expense today simply increases the price you will eventually have to pay to extend the lease.
Leasehold premises in Watchet with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Watchet 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.
In the wake of 9 months of lengthy negotiations with the freeholder of her one bedroom flat in Watchet, Rosie commenced the lease extension process just as the lease was coming close to the critical 80-year threshold. The legal work was concluded in August 2014. The landlord’s charges were negotiated to about six hundred pounds.
Mr G Martinez owned a basement apartment in Watchet in January 2009. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical residencies in Watchet with an extended lease were in the region of £166,400. The average amount of ground rent was £60 billed every twelve months. The lease lapsed on 9 June 2079. Given that there were 54 years outstanding we estimated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of expenses.
In 2012 we were called by Mr Y Edwards who, having owned a newly refurbished flat in Watchet in November 1997. We are asked if we could approximate the price would likely be for a ninety year lease extension. Similar flats in Watchet with 100 year plus lease were valued about £232,800. The mid-range amount of ground rent was £45 invoiced yearly. The lease terminated in 2090. Considering the 65 years remaining we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including expenses.