Newport Pagnell leases on residential properties are gradually losing value. Where your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher amount will be payable. Leasehold owners in Newport Pagnell will mostly qualify for a lease extension; however a solicitor will check if you qualify. In some cases you may not be entitled. There are also strict timetables and steps to comply with once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold premises in Newport Pagnell with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Newport Pagnell,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Newport Pagnell valuers.
16 months ago Muhammad, started to get near to the eighty-year mark with the lease on his ground floor flat in Newport Pagnell. In buying his flat 19 years previously, the lease term was of little concern. As luck would have it, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Muhammad was able to extend his lease at the eleventh hour in September. Muhammad and the freeholder in the end settled on a premium of £5,000 . If the lease had slid lower than 80 years, the price would have gone up by a minimum £875.
Last June we were approach by Dr G Lambert , who was assigned a lease of a garden apartment in Newport Pagnell in July 2008. The question was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparative residencies in Newport Pagnell with an extended lease were worth £235,200. The mid-range amount of ground rent was £45 invoiced monthly. The lease ran out on 2 May 2092. Taking into account 66 years unexpired we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.
Last Summer we were phoned by Mr Elijah White , who completed a ground floor flat in Newport Pagnell in August 1996. We are asked if we could estimate the premium could be to extend the lease by 90 years. Similar premises in Newport Pagnell with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £55 billed monthly. The lease terminated on 6 February 2103. Given that there were 77 years unexpired we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including fees.