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 early years due to the loss of value being disguised by increases in the Newton Abbot property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term slips below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Newton Abbot will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Newton Abbot can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in lease extensions.
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.
After protracted discussions with the freeholder of her ground floor flat in Newton Abbot, Nicole started the lease extension process just as her lease was coming close to the critical 80-year mark. The legal work was finalised in September 2006. The landlord’s fees were kept to an absolute minimum.
Mrs Bethany Mitchell acquired a one bedroom apartment in Newton Abbot in September 2008. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable homes in Newton Abbot with a long lease were worth £261,600. The average ground rent payable was £60 billed yearly. The lease ran out in 2078. Given that there were 52 years remaining we estimated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 not including professional charges.
Mrs Elizabeth Howard was assigned a lease of a one bedroom flat in Newton Abbot in June 2006. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Similar flats in Newton Abbot with 100 year plus lease were in the region of £218,000. The average ground rent payable was £45 billed yearly. The lease ran out in 2089. Taking into account 63 years unexpired we approximated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 not including costs.