Watnall 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. Legislation has been in place for sometime now allowing qualifying Watnall residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Watnall you should investigate if your lease has between 70 and 90 years remaining. There are compelling reasons why a Watnall flat owner with a lease having around eighty years unexpired should take action to ensure that a lease extension is actioned without delay
Leasehold residencies in Watnall with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Watnall can be a difficult process. We recommend you obtain guidance from a lawyer and valuer 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 Watnall lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Matthew was the the leasehold owner of a high value flat in Watnall on the market with a lease of fraction over 61 years remaining. Matthew informally spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Matthew to invoke his statutory right. Matthew procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Last March we were called by Mr and Mrs. I Torres , who completed a ground floor apartment in Watnall in November 1998. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Comparative premises in Watnall with a long lease were worth £246,800. The average amount of ground rent was £60 collected quarterly. The lease ran out in 2075. Given that there were 50 years as a residual term we approximated the premium to the landlord to extend the lease to be within £44,700 and £51,600 not including fees.
In 2013 we were e-mailed by Dr Kian Lee who, having was assigned a lease of a basement apartment in Watnall in September 1997. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Comparative homes in Watnall with an extended lease were valued about £208,200. The average amount of ground rent was £65 collected yearly. The lease ended in 2086. Having 61 years left we approximated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 not including professional charges.