Watlington leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Watlington enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Watlington you would be well advised to investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Watlington,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Watlington valuers.
After unsuccessful correspondence with the freeholder of her purpose-built apartment in Watlington, Sian commenced the lease extension process as the 80 year mark was fast nearing. The legal work was concluded in June 2010. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. W Cook bought a one bedroom flat in Watlington in June 1996. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Similar homes in Watlington with a long lease were worth £205,000. The average ground rent payable was £50 collected yearly. The lease ended in 2105. Considering the 79 years outstanding we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.
Last Autumn we were phoned by Mr and Mrs. Y Petit , who acquired a purpose-built flat in Watlington in April 2011. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparative flats in Watlington with 100 year plus lease were in the region of £275,000. The average ground rent payable was £65 billed monthly. The lease elapsed in 2094. Taking into account 68 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus costs.