The nearer a domestic lease in Watlington gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, in excess of 100 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner as opposed to later. Most flat owners in Watlington will meet the qualifying criteria; that being said a lawyer can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Using our service gives you enhanced control over the value of your Watlington leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Lucas was the the leasehold proprietor of a studio apartment in Watlington being marketed with a lease of a few days over 72 years outstanding. Lucas on an informal basis approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be due on a lease extension were Lucas to exercise his statutory right. Lucas obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Last Winter we were e-mailed by Dr Jordan Ali , who moved into a ground floor flat in Watlington in January 2002. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Similar homes in Watlington with 100 year plus lease were worth £171,800. The average amount of ground rent was £55 billed annually. The lease terminated on 1 January 2076. Having 50 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 not including professional charges.
In 2014 we were phoned by Mr and Mrs. M Moreau who, having completed a ground floor apartment in Watlington in March 2003. The dilemma was if we could approximate the premium could be to extend the lease by an additional years. Comparative premises in Watlington with an extended lease were worth £280,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease ran out on 22 October 2096. Considering the 70 years left we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.