Chances are that if you own a flat in Newington you actually own a long leasehold interest over your property
Leasehold premises in Newington with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
The conveyancers that we work with undertake Newington 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.
Last October Isaac, came perilously close to the 80-year threshold with the lease on his studio apartment in Newington. Having bought his home twenty years previously, the unexpired term was of minimal relevance. Luckily, he noticed he would imminently be paying way over the odds for Extending the lease. Isaac arranged for a lease extension just in the nick of time last January. Isaac and the freeholder via the management company ultimately agreed on a premium of £5,000 . If he not met the deadline, the sum would have increased by at least £1,000.
Last Winter we were approach by Mr Ethan Bell , who took over the lease of a one bedroom apartment in Newington in October 2007. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Identical premises in Newington with an extended lease were in the region of £270,000. The mid-range ground rent payable was £65 billed every twelve months. The lease ended on 12 June 2094. Having 68 years remaining we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus expenses.
An example of a Freehold Enfranchisement decision for a Newington flat 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 affected 41 flats. The remaining number of years on the lease was 107 years.