When it comes to domestic leasehold premises in Newport Pagnell, you are actually purchasing a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Anyone in Newport Pagnell with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has fewer than eighty years remaining, under the current statute the landlord is entitled to calculate and demand a greater premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Newport Pagnell with in excess of one hundred years left 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage 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 |
The lawyers that we work with undertake Newport Pagnell 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 conveyancing solicitor we work with provide it.
Blake was the the leasehold proprietor of a studio apartment in Newport Pagnell being sold with a lease of just over 72 years remaining. Blake on an informal basis spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Blake to invoke his statutory right. Blake obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2009 we were approached by Mr E Morris who, having was assigned a lease of a basement apartment in Newport Pagnell in March 2004. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Identical flats in Newport Pagnell with 100 year plus lease were in the region of £225,400. The mid-range amount of ground rent was £45 collected every twelve months. The lease ended on 13 August 2090. Given that there were 64 years left we calculated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 exclusive of expenses.
Last Christmas we were e-mailed by Mr Blake Sánchez , who took over the lease of a basement flat in Newport Pagnell in January 2004. We are asked if we could approximate the price would be for a ninety year lease extension. Identical homes in Newport Pagnell with a long lease were worth £270,000. The mid-range ground rent payable was £55 billed yearly. The lease terminated on 22 January 2101. Given that there were 75 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.