Main reasons to start your Watton lease extension

Main reasons to commence your Watton lease extension today:

A Watton leasehold property depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Watton is impacted by how many years the lease has remaining. If it is near to or less than 80 years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be concluded in advance of the 80 year mark. Current legislation enables Watton qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold residencies in Watton with over 100 years outstanding 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.

Banks and Building Societies may decide not to loan monies with a short lease

Nearly all banks and building societies insist on a lengthy amount of time remaining on any leasehold residence before they will consider it as adequate security. Even if you don't need a mortgage, you should be aware that it is likely that someone intending to buy your property in the future might well do, so in the event that they can't secure a mortgage, then the market price of your property could be adversely impacted. Since 2008 most mortgage lenders have increased the required minimum lease length that they are willing to grant a mortgage on

What makes us experts in Watton lease extensions?

Retaining our service will provide you enhanced control over the value of your Watton leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Watton Lease Extension Case Summaries:

Callum, Watton, Norfolk,

Callum was the the leasehold owner of a conversion flat in Watton on the market with a lease of fraction over 72 years unexpired. Callum informally approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Callum to exercise his statutory right. Callum obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.

Watton case:

Mr Blake Turner took over the lease of a garden flat in Watton in April 2000. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Similar flats in Watton with 100 year plus lease were in the region of £198,800. The average amount of ground rent was £55 collected yearly. The lease came to a finish in 2081. Taking into account 55 years remaining we estimated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of fees.

Watton case:

In 2009 we were e-mailed by Mr and Mrs. F Smith who, having completed a studio flat in Watton in February 2004. The dilemma was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparative flats in Watton with an extended lease were valued about £295,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease ran out on 28 January 2101. Taking into account 75 years remaining we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.