When it comes to long leasehold property in Newbridge, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than 80 years remaining. Anyone in Newbridge with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has under eighty years left, under the current statute the freeholder can calculate and levy a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Newbridge with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Newbridge leasehold, as your property will be more valuable and marketable in terms of lease length should you wish 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.
Muhammad owned a studio apartment in Newbridge being sold with a lease of a few days over sixty years left. Muhammad informally approached his landlord a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be payable on a lease extension were Muhammad to exercise his statutory right. Muhammad procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2011 we were called by Dr Gabriel Michel who, having was assigned a lease of a first floor flat in Newbridge in September 2005. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Similar homes in Newbridge with 100 year plus lease were valued around £210,600. The mid-range amount of ground rent was £45 billed monthly. The lease finished in 2088. Having 62 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 plus fees.
Last Spring we were e-mailed by Mrs D Díaz , who purchased a ground floor flat in Newbridge in August 2001. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Newbridge with an extended lease were worth £265,000. The mid-range ground rent payable was £50 collected yearly. The lease lapsed on 3 November 2099. Taking into account 73 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.