The only way is down when it comes to Newent lease terms. Newent properties that have a residual term fewer than eighty years will reduce in market price at a rapid rate, and the cost of extending your lease will rise.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Newent 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 conveyancer we work with provide it.
Off the back of lengthy correspondence with the landlord of her purpose-built flat in Newent, Amber initiated the lease extension process just as the lease was coming close to the crucial 80-year deadline. The transaction was finalised in August 2014. The landlord’s costs were kept to an absolute minimum.
Last Autumn we were phoned by Dr B Clark , who moved into a basement flat in Newent in January 2001. We are asked if we could estimate the price could be for a 90 year extension to my lease. Comparable residencies in Newent with 100 year plus lease were in the region of £208,600. The mid-range ground rent payable was £60 invoiced annually. The lease ended in 2081. Having 57 years outstanding we calculated the premium to the landlord to extend the lease to be within £30,400 and £35,200 plus legals.
Mr Zachary Hernández acquired a first floor apartment in Newent in January 1998. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Identical homes in Newent with 100 year plus lease were valued around £200,000. The mid-range ground rent payable was £50 billed monthly. The lease concluded in 2101. Considering the 77 years outstanding we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of fees.