The closer a domestic lease in Newton Abbot gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, more than 125 years to run then this decrease may be negligible however there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner rather than later. Many flat owners in Newton Abbot will qualify for this right; that being said a conveyancing solicitor will be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Newton Abbot with in excess of 100 years left 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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| 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. |
Lease extensions in Newton Abbot can be a difficult process. We recommend you obtain professional help from a lawyer 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 in-depth market knowledge procuring Newton Abbot lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Sam owned a conversion flat in Newton Abbot being sold with a lease of fraction over sixty years remaining. Sam on an informal basis approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Sam to exercise his statutory right. Sam obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
Mr Charlie Lee bought a first floor apartment in Newton Abbot in June 2003. The question was if we could approximate the price could be to extend the lease by ninety years. Similar homes in Newton Abbot with an extended lease were valued around £265,000. The average ground rent payable was £50 billed monthly. The lease terminated on 8 February 2098. Given that there were 73 years remaining we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.
In 2010 we were approached by Ms Laura Watson who, having completed a ground floor flat in Newton Abbot in November 2003. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Identical residencies in Newton Abbot with a long lease were valued about £264,000. The average amount of ground rent was £60 billed per annum. The lease finished in 2078. Considering the 53 years remaining we estimated the compensation to the freeholder to extend the lease to be within £37,100 and £42,800 not including professional charges.