The market value of a leasehold property in Watlington is impacted by how long the lease has remaining. If it is close to or less than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is ideal to start the lease extension process when the lease still has 82 years unexpired so that formalities can be addressed well before the 80 year cut off point. Leasehold Reform legislation entitles Watlington qualifying lessees to an additional term of ninety years on top of the unexpired term, at a notional rent (zero ground rent). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Watlington can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience procuring Watlington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted negotiations with the freeholder of her first floor flat in Watlington, Molly initiated the lease extension process as the 80 year deadline was fast advancing. The transaction completed in August 2007. The freeholder’s costs were kept to an absolute minimum.
Mr Elijah Bennett purchased a basement apartment in Watlington in November 2003. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable properties in Watlington with a long lease were in the region of £300,000. The average ground rent payable was £50 invoiced every twelve months. The lease expired in 2101. Having 76 years remaining we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus fees.
Last month we were contacted by Mrs Katie Garcia , who acquired a basement apartment in Watlington in May 2009. The question was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparative premises in Watlington with a long lease were in the region of £257,800. The mid-range amount of ground rent was £65 collected quarterly. The lease lapsed on 19 January 2090. Given that there were 65 years remaining we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 not including professional charges.