Chances are that where you own a flat in Watton you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you enhanced control over the value of your Watton leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jayden owned a 2 bedroom apartment in Watton on the market with a lease of a few days over 59 years unexpired. Jayden informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jayden to invoke his statutory right. Jayden procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the property.
In 2012 we were called by Ms K Roberts who, having was assigned a lease of a newly refurbished apartment in Watton in January 1995. The question was if we could estimate the premium would likely be to prolong the lease by an additional years. Comparable flats in Watton with 100 year plus lease were worth £300,000. The mid-range amount of ground rent was £50 billed yearly. The lease lapsed in 2101. Having 76 years left we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus expenses.
Mrs J Kelly owned a garden flat in Watton in November 1998. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Comparable premises in Watton with an extended lease were in the region of £252,800. The average ground rent payable was £65 billed per annum. The lease terminated in 2090. Having 65 years outstanding we calculated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 not including expenses.