For those whose Newton Abbot home is held on a long lease, our message is clear – if no remedial action is taken, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
Leasehold premises in Newton Abbot with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Newton Abbot can be a difficult process. We recommend you procure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with 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.
Eli was the the leasehold proprietor of a high value flat in Newton Abbot on the market with a lease of a little over sixty years left. Eli on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Eli to invoke his statutory right. Eli procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2011 we were approached by Mr and Mrs. F Young who, having was assigned a lease of a basement flat in Newton Abbot in October 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Comparable properties in Newton Abbot with a long lease were in the region of £200,800. The average amount of ground rent was £65 billed yearly. The lease finished in 2086. Having 60 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 not including expenses.
Last month we were approach by Mr and Mrs. R Johnson , who owned a newly refurbished flat in Newton Abbot in July 1999. The question was if we could approximate the price would likely be to extend the lease by 90 years. Comparable flats in Newton Abbot with an extended lease were valued about £260,000. The average amount of ground rent was £50 collected per annum. The lease expired on 4 October 2097. Having 71 years left we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.