It’s an underpublicised certainty that a Watton residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Watton property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Watton will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Skipton Building Society | |
| TSB | |
| Virgin |
The conveyancing solicitors that we work with procure Watton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In the wake of eight months of protracted negotiations with the freeholder of her purpose-built flat in Watton, Isabel initiated the lease extension process as the 80 year threshold was rapidly approaching. The lease extension completed in November 2013. The freeholder’s costs were restricted to approximately 500 pounds.
In 2014 we were called by Ms Bethan Laurent who, having was assigned a lease of a recently refurbished flat in Watton in June 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparative flats in Watton with a long lease were worth £295,000. The mid-range amount of ground rent was £45 billed monthly. The lease came to a finish in 2100. Considering the 74 years outstanding we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.
Last October we were e-mailed by Mr J Allen , who was assigned a lease of a garden apartment in Watton in July 2006. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparative flats in Watton with a long lease were in the region of £243,000. The average ground rent payable was £65 invoiced annually. The lease ran out in 2089. Given that there were 63 years unexpired we calculated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of costs.