As the length of the unexpired term of a Watnall residential lease diminished so does its value and therefore the value of your property. If the residual term has, over 99 years to run then this decrease may be of little impact that being said there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Watnall will qualify for this right; nevertheless a conveyancing solicitor can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | 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. |
The conveyancers that we work with handle Watnall lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last year Jude, came perilously near to the eighty-year mark with the lease on his basement flat in Watnall. In buying his home two decades ago, the length of the lease was of no importance. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Jude extended the lease at the eleventh hour in September. Jude and the landlord eventually settled on sum of £5,500 . If the lease had slid lower than eighty years, the sum would have gone up by at least £1,125.
Last May we were e-mailed by Dr P White , who completed a basement flat in Watnall in March 2012. The dilemma was if we could estimate the price would be to prolong the lease by an additional years. Identical residencies in Watnall with a long lease were in the region of £285,000. The average amount of ground rent was £55 collected annually. The lease termination date was in 2105. Taking into account 79 years unexpired we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of costs.
In 2009 we were e-mailed by Mr and Mrs. V Morris who, having purchased a garden apartment in Watnall in April 2002. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical homes in Watnall with 100 year plus lease were worth £193,400. The average amount of ground rent was £65 collected yearly. The lease came to a finish on 4 April 2085. Taking into account 59 years outstanding we estimated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 plus expenses.