It’s a harsh truth that a Newton Abbot residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Newton Abbot property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher premium will be payable. Most leasehold owners in Newton Abbot will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| National Westminster Bank | |
| Santander | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Lease extensions in Newton Abbot can be a difficult process. We recommend you procure professional help from a lawyer and valuer 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.
Finn owned a high value flat in Newton Abbot being sold with a lease of a few days over sixty years left. Finn on an informal basis contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Finn to exercise his statutory right. Finn procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last Summer we were approach by Mrs R Mason , who bought a one bedroom apartment in Newton Abbot in July 2010. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable residencies in Newton Abbot with 100 year plus lease were in the region of £242,600. The average amount of ground rent was £45 collected annually. The lease elapsed in 2093. Given that there were 67 years left we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 not including professional charges.
In 2014 we were e-mailed by Dr Sam Cooper who, having acquired a basement flat in Newton Abbot in June 2003. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparable properties in Newton Abbot with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £55 billed monthly. The lease finished on 26 May 2104. Having 78 years unexpired we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of expenses.