It’s an underpublicised truth that a Newington residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Newington property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining drops under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Newington will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold residencies in Newington with more than one hundred years unexpired on the lease are often 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 purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Engaging our service will provide you increased control over the value of your Newington leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Elijah owned a conversion flat in Newington being sold with a lease of just over fifty eight years outstanding. Elijah on an informal basis approached his landlord a well known Manchester-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 rise in the rent to £200 per annum. No ground rent would be due on a lease extension were Elijah to exercise his statutory right. Elijah obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Dr Reuben Thompson completed a basement flat in Newington in June 2007. We are asked if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Identical residencies in Newington with an extended lease were in the region of £200,000. The average ground rent payable was £50 billed annually. The lease elapsed in 2103. Having 77 years outstanding we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.
An example of a Freehold Enfranchisement decision for a Newington property is 1-41 Royal Tower Lodge 40 Cartwright Street in April 2013. the tribunal adding the agreed value of capitalised ground rents and the reversion the price to be paid for the freehold was £1,187,000 This case was in relation to 41 flats. The number of years remaining on the existing lease(s) was 107 years.