It’s an underpublicised truth that a Watlington residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Watlington property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term falls under eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Watlington will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
Leasehold properties in Watlington with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Watlington,the lease extension lawyers 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.
Following protracted correspondence with the landlord of her ground floor apartment in Watlington, Victoria commenced the lease extension process just as her lease was approaching the all-important 80-year threshold. The lease extension completed in February 2012. The freeholder’s costs were negotiated to less than 650 pounds.
Last month we were approach by Mr Jayden Brown , who owned a purpose-built flat in Watlington in October 2007. The question was if we could estimate the price would likely be to prolong the lease by ninety years. Similar homes in Watlington with 100 year plus lease were valued about £250,400. The mid-range amount of ground rent was £65 collected per annum. The lease ran out in 2089. Having 64 years left we estimated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 plus costs.
In 2014 we were approached by Mrs O Smith who, having completed a basement apartment in Watlington in September 2011. The question was if we could estimate the premium would be to extend the lease by an additional years. Comparable properties in Watlington with an extended lease were in the region of £189,000. The average ground rent payable was £55 invoiced every twelve months. The lease terminated on 27 March 2078. Considering the 53 years unexpired we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of fees.