For anyone whose Watton home is held on a long lease, the message is clear – if no remedial action is taken, your property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension.
Leasehold properties in Watton with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 Watton can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 Watton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful discussions with the landlord of her garden flat in Watton, Katherine started the lease extension process as the 80 year threshold was rapidly approaching. The lease extension was concluded in May 2015. The landlord’s fees were restricted to about 700 pounds.
In 2013 we were called by Mr and Mrs. I Ali who, having took over the lease of a purpose-built flat in Watton in May 2009. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Similar residencies in Watton with a long lease were in the region of £225,800. The average ground rent payable was £60 billed monthly. The lease finished in 2085. Considering the 60 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £25,700 and £29,600 not including fees.
Ms J Martinez took over the lease of a first floor apartment in Watton in January 1995. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparable flats in Watton with a long lease were valued about £210,000. The average ground rent payable was £50 invoiced annually. The lease lapsed in 2105. Considering the 80 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.