As the length of the unexpired term of a Newington domestic lease decreases so does its value and therefore the value of your property. If the lease has, in excess of 125 years remaining then this decrease may be fractional that being said there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Many flat owners in Newington will meet the qualifying criteria; however a conveyancing solicitor will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Newington with over 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 property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
Using our service gives you enhanced control over the value of your Newington leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful correspondence with the landlord of her studio apartment in Newington, Alice initiated the lease extension process as the 80 year threshold was swiftly advancing. The transaction completed in February 2005. The freeholder’s costs were negotiated to approximately 550 GBP.
Last Spring we were called by Mr and Mrs. D Dupont , who bought a recently refurbished apartment in Newington in June 2003. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative flats in Newington with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease end date was in 2096. Having 71 years left we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Newington premises 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 unexpired residue of the current lease was 107 years.