The re-sale value of a leasehold property in Newbridge is impacted by how many years the lease has remaining. If it is near to or fewer than 80 years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that all matters can be concluded in advance of the eighty year mark. Statute entitles Newbridge qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of 90 years. The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Newbridge 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 conveyancing solicitor we work with provide it.
After unsuccessful discussions with the landlord of her leasehold flat in Newbridge, Nicole commenced the lease extension process as the eighty year deadline was fast approaching. The legal work completed in June 2006. The landlord’s fees were kept to an absolute minimum.
Last Spring we were called by Mr and Mrs. D Bertrand , who bought a purpose-built apartment in Newbridge in October 2006. The question was if we could approximate the price would be for a 90 year lease extension. Comparative premises in Newbridge with an extended lease were in the region of £225,400. The mid-range amount of ground rent was £45 billed annually. The lease lapsed on 7 June 2090. Taking into account 64 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 not including expenses.
Mrs E Wright owned a garden apartment in Newbridge in February 1996. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Comparative properties in Newbridge with a long lease were in the region of £270,000. The mid-range amount of ground rent was £55 billed monthly. The lease ran out in 2101. Given that there were 75 years remaining we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.