Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Newbridge. Inevitably, the length of lease left reduces as time goes by. This may pass by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Newbridge have the right to extend the lease for a further 90 years in accordance with statute. You should give careful deliberation before putting off your Newbridge lease extension. Holding off the cost now only increases the price you will eventually incur for a lease extension
It is generally accepted that a residential leasehold with over 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 remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Newbridge,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Newbridge valuers.
In the wake of 6 months of lengthy discussions with the landlord of her first floor apartment in Newbridge, Aimee initiated the lease extension process as the 80 year mark was rapidly advancing. The legal work completed in January 2011. The freeholder’s fees were negotiated to below 500 pounds.
Dr W Smith bought a one bedroom apartment in Newbridge in June 2002. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparable properties in Newbridge with 100 year plus lease were worth £246,800. The mid-range ground rent payable was £60 collected annually. The lease came to a finish on 12 March 2076. Taking into account 50 years remaining we approximated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 exclusive of legals.
In 2010 we were approached by Dr L Norbert who, having completed a first floor flat in Newbridge in November 2003. The question was if we could approximate the premium could be for a ninety year lease extension. Comparative properties in Newbridge with an extended lease were in the region of £208,200. The mid-range amount of ground rent was £65 collected per annum. The lease terminated in 2087. Having 61 years remaining we estimated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of professional charges.