Watchet leases on domestic deteriorating in value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. If lease term is under eighty years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Watchet will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In certain cases you may not be entitled. There are also strict timetables and procedures to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in Watchet with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Leeds Building Society | |
| National Westminster Bank | |
| Virgin |
The lawyers 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.
Ethan owned a studio apartment in Watchet on the market with a lease of a little over 61 years outstanding. Ethan informally spoke with his landlord a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Ethan to invoke his statutory right. Ethan procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
Last May we were called by Mr and Mrs. O Rose , who owned a first floor flat in Watchet in March 2003. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical flats in Watchet with 100 year plus lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease concluded on 23 March 2097. Taking into account 71 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.
Last month we were called by Dr Nathan Leroy , who acquired a one bedroom flat in Watchet in January 2004. The question was if we could approximate the premium would be to prolong the lease by 90 years. Comparable residencies in Watchet with a long lease were in the region of £254,200. The mid-range ground rent payable was £60 collected per annum. The lease lapsed on 19 May 2077. Considering the 51 years as a residual term we calculated the premium to the landlord to extend the lease to be within £43,700 and £50,600 plus legals.