The closer a domestic lease in Watton gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, beyond 99 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than eighty years left 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 reason why you should consider extending without delay. Many flat owners in Watton will qualify for this right; that being said a conveyancer will be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you enhanced control over the value of your Watton leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of lengthy correspondence with the freeholder of her ground floor flat in Watton, Imogen started the lease extension process just as the lease was coming close to the all-important 80-year threshold. The lease extension was finalised in August 2013. The landlord’s charges were negotiated to approximately 450 GBP.
In 2010 we were phoned by Dr S Cox who, having took over the lease of a first floor flat in Watton in April 2005. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative homes in Watton with a long lease were worth £275,000. The average ground rent payable was £45 collected per annum. The lease finished in 2095. Considering the 69 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.
Last month we were called by Dr Rosie Ward , who completed a one bedroom flat in Watton in November 2012. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Similar homes in Watton with 100 year plus lease were worth £216,000. The average ground rent payable was £60 invoiced per annum. The lease ended in 2084. Taking into account 58 years left we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.