Newton Abbot leases on domestic properties are gradually losing value. if your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term dips under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Newton Abbot will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain cases you may not be entitled. There are prescribed timetables and procedures to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Newton Abbot lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Trailing protracted correspondence with the freeholder of her purpose-built flat in Newton Abbot, Amelia initiated the lease extension process as the eighty year deadline was swiftly coming. The transaction was concluded in September 2008. The freeholder’s charges were kept to an absolute minimum.
Last Winter we were phoned by Mr and Mrs. E Lewis , who bought a purpose-built apartment in Newton Abbot in July 2002. The question was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Identical premises in Newton Abbot with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £55 collected every twelve months. The lease ended on 18 March 2105. Having 79 years unexpired we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus legals.
Last Winter we were phoned by Mrs Kate Clark , who owned a purpose-built flat in Newton Abbot in September 2001. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Identical properties in Newton Abbot with an extended lease were worth £193,400. The average amount of ground rent was £65 billed per annum. The lease came to a finish on 19 February 2085. Considering the 59 years remaining we estimated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 not including fees.