Newton Abbot leases on residential properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the existing lease falls under eighty years - otherwise a higher premium will be due. Leasehold owners in Newton Abbot will usually qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In certain cases you may not qualify. There are prescribed deadlines and steps to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you enhanced control over the value of your Newton Abbot leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ethan was the the leasehold proprietor of a 2 bedroom apartment in Newton Abbot on the market with a lease of a few days over sixty years remaining. Ethan on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Ethan to invoke his statutory right. Ethan obtained expert advice and secured satisfactory deal without going to tribunal and sell the property.
Last year we were e-mailed by Mr and Mrs. P Baker , who completed a studio apartment in Newton Abbot in May 2012. The question was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparable homes in Newton Abbot with 100 year plus lease were worth £264,000. The average ground rent payable was £60 collected every twelve months. The lease end date was in 2079. Considering the 53 years remaining we estimated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 plus professional charges.
Last year we were approach by Dr K Harris , who bought a one bedroom flat in Newton Abbot in February 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Similar homes in Newton Abbot with 100 year plus lease were valued about £225,400. The average amount of ground rent was £45 billed monthly. The lease terminated in 2090. Given that there were 64 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 exclusive of expenses.