The re-sale value of a leasehold property in Newport Pagnell depends on how long the lease has left to run. If it is close to or less than eighty years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is ideal to start the lease extension process when the lease still has 82 years remaining so that a lease extension can be finalised ahead of the eighty year cut off point. Current legislation enables Newport Pagnell qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Newport Pagnell with over one hundred years unexpired on the lease are often referred to as ‘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 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Lease extensions in Newport Pagnell can be a difficult process. We recommend you procure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Newport Pagnell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Toby, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Newport Pagnell. In buying his flat 19 years previously, the unexpired term was of no importance. Thankfully, he realised he would imminently be paying an inflated amount for a lease extension. Toby extended the lease at the eleventh hour in June. Toby and the landlord ultimately agreed on the final figure of £5,500 . If he failed to meet the deadline, the price would have become more exhorbitant by at least £900.
Last Autumn we were approach by Mr and Mrs. O Lefebvre , who took over the lease of a ground floor apartment in Newport Pagnell in June 2010. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable properties in Newport Pagnell with a long lease were in the region of £173,800. The average amount of ground rent was £65 collected every twelve months. The lease came to a finish in 2080. Given that there were 55 years remaining we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 plus legals.
In 2013 we were approached by Mr G Evans who, having acquired a one bedroom apartment in Newport Pagnell in September 2008. The question was if we could estimate the premium could be to extend the lease by an additional years. Comparable premises in Newport Pagnell with an extended lease were in the region of £235,200. The average amount of ground rent was £45 invoiced monthly. The lease expired on 18 September 2091. Given that there were 66 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.