For those whose Watchet flat is held on a long lease, our message is clear – if nothing is done, the property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.
Leasehold residencies in Watchet with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Watchet can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Watchet lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Elijah was the the leasehold owner of a high value flat in Watchet on the market with a lease of a little over 72 years outstanding. Elijah on an informal basis approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Elijah to exercise his statutory right. Elijah obtained expert advice and secured an acceptable deal informally and sell the flat.
Mr and Mrs. P Moreau owned a ground floor flat in Watchet in May 2005. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Comparable homes in Watchet with a long lease were in the region of £235,200. The mid-range ground rent payable was £45 invoiced quarterly. The lease came to a finish on 13 June 2091. Having 66 years unexpired we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including expenses.
Last month we were called by Mrs Y Rose , who bought a first floor flat in Watchet in February 1995. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Comparable flats in Watchet with a long lease were valued about £280,000. The mid-range amount of ground rent was £55 invoiced annually. The lease came to a finish in 2102. Considering the 77 years unexpired we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of fees.