When it comes to domestic leasehold premises in Newton Abbot, you are actually buying an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are fewer than eighty years remaining. Residents in Newton Abbot with a lease drawing near to 81 years remaining should seriously consider extending it without delay. Once a lease has below eighty years remaining, under the relevant Act the freeholder can calculate and levy a greater premium, assessed on a technical multiplication, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service gives you increased control over the value of your Newton Abbot leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Aiden, started to get near to the eighty-year threshold with the lease on his basement apartment in Newton Abbot. In buying his property two decades ago, the lease term was of minimal bearing. As luck would have it, he noticed he would imminently be paying an escalated premium for Extending the lease. Aiden was able to extend his lease just under the wire last April. Aiden and the freeholder subsequently agreed on the final figure of £5,000 . If he failed to meet the deadline, the figure would have become more costly by a minimum £875.
In 2014 we were called by Mr and Mrs. R Petit who, having owned a newly refurbished apartment in Newton Abbot in April 2010. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Similar properties in Newton Abbot with a long lease were valued about £242,600. The average ground rent payable was £45 invoiced annually. The lease ran out on 3 April 2092. Considering the 67 years left we estimated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of costs.
Last year we were approach by Dr Ellen Cooper , who was assigned a lease of a garden apartment in Newton Abbot in February 2006. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical flats in Newton Abbot with a long lease were in the region of £280,000. The mid-range ground rent payable was £55 billed monthly. The lease concluded in 2103. Given that there were 78 years remaining we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.