With a domestic leasehold property in Newport Pagnell, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Residents in Newport Pagnell with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. Once the lease term has below 80 years left, under the current Act the freeholder is entitled to calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold premises in Newport Pagnell with more than 100 years outstanding 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 situations there is often little upside in buying the freehold unless savings on ground rent and maintenance 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; |
| Birmingham Midshires | 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. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Newport Pagnell,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Newport Pagnell valuers.
Trailing lengthy negotiations with the landlord of her one bedroom apartment in Newport Pagnell, Ellie initiated the lease extension process as the eighty year mark was fast approaching. The lease extension was concluded in October 2010. The freeholder’s charges were negotiated to less than 500 pounds.
Dr C Carter was assigned a lease of a recently refurbished apartment in Newport Pagnell in February 2006. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Similar flats in Newport Pagnell with an extended lease were worth £235,200. The mid-range amount of ground rent was £45 invoiced annually. The lease expired in 2091. Having 66 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.
In 2012 we were e-mailed by Dr B Wright who, having completed a basement flat in Newport Pagnell in March 1999. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Identical flats in Newport Pagnell with a long lease were worth £280,000. The mid-range ground rent payable was £55 billed every twelve months. The lease came to a finish in 2102. Given that there were 77 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including fees.