The market value of Watlington leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the unexpired lease term is less than 80 years
Leasehold residencies in Watlington with in excess of 100 years remaining 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Watlington,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Watlington valuers.
Aaron was the the leasehold proprietor of a studio flat in Watlington on the market with a lease of a little over fifty eight years unexpired. Aaron informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Aaron to exercise his statutory right. Aaron procured expert advice and secured an acceptable deal informally and readily saleable.
In 2009 we were called by Dr Sam Jones who, having owned a purpose-built flat in Watlington in February 2009. We are asked if we could estimate the price would likely be for a 90 year lease extension. Identical homes in Watlington with a long lease were valued about £240,600. The average amount of ground rent was £60 invoiced per annum. The lease expired on 10 August 2088. Given that there were 62 years left we approximated the premium to the landlord for the lease extension to be within £21,900 and £25,200 not including legals.
Dr T Brooks bought a garden apartment in Watlington in July 2001. The question was if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Comparable properties in Watlington with 100 year plus lease were valued about £174,200. The mid-range ground rent payable was £55 collected per annum. The lease finished on 18 June 2077. Considering the 51 years left we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including professional charges.