The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Newent have the right to extend the lease for an additional ninety years under Leasehold Reform legislation. Please think carefully before delaying your Newent lease extension. Putting off that expense today simply escalates the amount you will ultimately be required to pay for a lease extension.
Leasehold premises in Newent with more than 100 years unexpired 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 lawyers that we work with undertake 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 conveyancing solicitor we work with provide it.
After unsuccessful discussions with the landlord of her leasehold flat in Newent, Rebecca started the lease extension process just as the lease was approaching the all-important 80-year deadline. The lease extension was concluded in July 2012. The freeholder’s costs were restricted to slightly above 650 pounds.
Last month we were contacted by Mrs U Turner , who owned a one bedroom flat in Newent in August 2012. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Newent with a long lease were in the region of £250,400. The average ground rent payable was £65 collected per annum. The lease concluded on 19 February 2089. Given that there were 64 years remaining we approximated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of costs.
Last March we were approach by Ms I Jones , who purchased a purpose-built flat in Newent in August 2005. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative residencies in Newent with an extended lease were in the region of £184,000. The average amount of ground rent was £55 billed per annum. The lease elapsed on 20 October 2078. Having 53 years left we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus professional charges.