The value of Watton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the unexpired lease term is less than 80 years
Leasehold properties in Watton with over one hundred years left 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 circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Lease extensions in Watton can be a difficult process. We recommend you obtain guidance from a lawyer 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 in-depth market knowledge 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.
After lengthy negotiations with the landlord of her leasehold flat in Watton, Millie started the lease extension process just as the lease was nearing the all-important eighty-year threshold. The legal work completed in January 2009. The landlord’s fees were negotiated to about 450 pounds.
In 2013 we were approached by Mr Jack Carter who, having moved into a one bedroom apartment in Watton in May 2001. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative homes in Watton with 100 year plus lease were valued about £208,600. The mid-range ground rent payable was £60 invoiced yearly. The lease concluded on 13 September 2083. Taking into account 57 years left we estimated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of professional charges.
Mr and Mrs. U White was assigned a lease of a ground floor flat in Watton in November 1996. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Identical flats in Watton with a long lease were valued about £200,000. The average ground rent payable was £50 invoiced quarterly. The lease expired on 16 November 2103. Given that there were 77 years remaining we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus costs.