Newbridge leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Newbridge residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Newbridge you should investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Newbridge with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| Virgin |
Lease extensions in Newbridge can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Newbridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Samuel owned a 2 bedroom flat in Newbridge on the market with a lease of a few days over sixty years outstanding. Samuel informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Samuel to exercise his statutory right. Samuel procured expert advice and secured satisfactory resolution without resorting to tribunal and sell the property.
In 2009 we were e-mailed by Dr Riley Anderson who, having took over the lease of a basement flat in Newbridge in March 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Similar homes in Newbridge with a long lease were valued about £280,000. The average ground rent payable was £55 billed monthly. The lease concluded on 15 August 2104. Given that there were 78 years unexpired we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.
In 2012 we were e-mailed by Mr T Allen who, having bought a recently refurbished flat in Newbridge in November 2004. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparative flats in Newbridge with 100 year plus lease were worth £186,000. The mid-range amount of ground rent was £65 collected quarterly. The lease terminated in 2084. Having 58 years unexpired we estimated the premium to the landlord to extend the lease to be within £23,800 and £27,400 plus costs.