Chances are that if you own a flat in Newbridge you actually own a long leasehold interest over your property
It is generally considered that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Regardless of whether you are a tenant or a landlord in Newbridge,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Newbridge valuers.
Trailing lengthy correspondence with the freeholder of her first floor apartment in Newbridge, Jordan commenced the lease extension process as the eighty year threshold was rapidly nearing. The transaction was concluded in September 2005. The freeholder’s fees were restricted to below 450 GBP.
Mr Austin Rogers was assigned a lease of a newly refurbished flat in Newbridge in February 1998. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar homes in Newbridge with a long lease were worth £255,000. The average amount of ground rent was £50 invoiced quarterly. The lease expired on 20 January 2095. Considering the 70 years as a residual term we estimated the premium to the landlord to extend the lease to be between £10,500 and £12,000 exclusive of expenses.
Last Autumn we were e-mailed by Dr Arthur Rogers , who completed a ground floor flat in Newbridge in July 1996. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparative flats in Newbridge with 100 year plus lease were worth £246,800. The mid-range amount of ground rent was £60 billed quarterly. The lease finished in 2075. Considering the 50 years unexpired we approximated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 exclusive of expenses.