Newquay residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
Leasehold properties in Newquay with in excess of 100 years remaining on the lease are sometimes 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 to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
Lender | Requirement |
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Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
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. |
National Westminster Bank | Mortgage term plus 30 years. |
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. |
Irrespective of whether you are a tenant or a freeholder in Newquay,the lease extension solicitors 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 Newquay valuers.
In the wake of eight months of unsuccessful negotiations with the landlord of her purpose-built flat in Newquay, Katherine initiated the lease extension process just as her lease was approaching the critical eighty-year threshold. The transaction was finalised in April 2006. The landlord’s charges were restricted to about 600 pounds.
Dr Abigail Johnson took over the lease of a one bedroom flat in Newquay in May 2006. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Comparative residencies in Newquay with 100 year plus lease were worth £166,800. The mid-range amount of ground rent was £50 invoiced per annum. The lease expired on 9 January 2074. Taking into account 50 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 plus fees.
In 2010 we were phoned by Mr and Mrs. C Kelly who, having completed a one bedroom flat in Newquay in July 1996. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparative residencies in Newquay with a long lease were valued around £280,000. The average amount of ground rent was £45 collected quarterly. The lease concluded in 2094. Taking into account 70 years as a residual term we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of costs.