As the the remaining lease term of a Newton Abbot domestic lease lessens so does its value and therefore the value of your property. Where the lease has, beyond one hundred years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner rather than later. The majority of flat owners in Newton Abbot will meet the qualifying criteria; that being said a conveyancing solicitor can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Newton Abbot with in excess of 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 to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Lease extensions in Newton Abbot can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in this area.
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.
Trailing lengthy correspondence with the landlord of her first floor flat in Newton Abbot, Mollie commenced the lease extension process as the 80 year deadline was quickly approaching. The transaction was finalised in October 2009. The landlord’s fees were kept to an absolute minimum.
In 2011 we were contacted by Mr Thomas Young who, having purchased a purpose-built flat in Newton Abbot in May 2001. We are asked if we could estimate the price would be to extend the lease by an additional years. Comparable premises in Newton Abbot with 100 year plus lease were valued around £270,000. The mid-range amount of ground rent was £55 collected yearly. The lease concluded on 7 May 2100. Given that there were 74 years remaining we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
Last month we were contacted by Dr Danielle Dupont , who bought a first floor apartment in Newton Abbot in September 2007. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Comparative premises in Newton Abbot with 100 year plus lease were worth £166,400. The average amount of ground rent was £60 billed yearly. The lease termination date was on 13 July 2080. Having 54 years remaining we calculated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 plus fees.