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Top reasons for Newport Pagnell lease extension


Main reasons to commence your Newport Pagnell lease extension today:

A Newport Pagnell leasehold property depreciates with the years remaining on the lease.

Newport Pagnell leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Newport Pagnell residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Newport Pagnell you must see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold residencies in Newport Pagnell with more than one hundred 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 property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies may not grant a mortgage with a short lease

Mortgage companies are inclined not lend on short residential leases. You are likely to experience problems where you wish to sell your flat in Newport Pagnell if the remaining lease term is below the criteria set by most mortgage companies. Different mortgage companies have different criteria but in the main theyrequire an unexpired term of at least seventy years.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
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.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.
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.
Yorkshire 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.

Get in touch with one of our Newport Pagnell lease extension solicitors or enfranchisement solicitors

Retaining our service gives you increased control over the value of your Newport Pagnell leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Newport Pagnell Lease Extension Case Summaries:

Luca, Newport Pagnell, Buckinghamshire,

Luca was the the leasehold owner of a studio apartment in Newport Pagnell being marketed with a lease of fraction over sixty years unexpired. Luca informally approached his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Luca to exercise his statutory right. Luca obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.

Newport Pagnell case:

Dr H Morel acquired a studio apartment in Newport Pagnell in March 2005. The question was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparative properties in Newport Pagnell with an extended lease were valued around £255,000. The average ground rent payable was £50 collected annually. The lease lapsed on 9 October 2095. Having 70 years left we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.

Newport Pagnell case:

Last Autumn we were contacted by Mr B Patel , who acquired a basement flat in Newport Pagnell in January 2005. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Comparative homes in Newport Pagnell with an extended lease were in the region of £246,800. The average ground rent payable was £60 invoiced per annum. The lease expired in 2075. Having 50 years remaining we calculated the premium to the landlord to extend the lease to be within £44,700 and £51,600 plus fees.