When it comes to domestic leasehold property in Newton Abbot, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are fewer than 80 years left. Leasehold owners in Newton Abbot with a lease approaching 81 years unexpired should seriously think of extending it sooner as opposed to later. Once the lease term has below 80 years remaining, under the relevant statute the freeholder is entitled to calculate and levy a larger amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Newton Abbot with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Newton Abbot can be a difficult process. We recommend you obtain guidance from a conveyancer 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.
Off the back of protracted correspondence with the freeholder of her garden apartment in Newton Abbot, Grace commenced the lease extension process just as the lease was coming close to the crucial 80-year threshold. The lease extension was concluded in January 2006. The freeholder’s fees were kept to an absolute minimum.
Dr C Ali completed a garden apartment in Newton Abbot in May 2012. The question was if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Comparative flats in Newton Abbot with 100 year plus lease were valued about £176,200. The mid-range ground rent payable was £65 billed per annum. The lease concluded on 17 January 2082. Given that there were 56 years left we calculated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 not including fees.
Last month we were e-mailed by Dr Joshua Alexander , who bought a garden flat in Newton Abbot in March 2012. The question was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparative properties in Newton Abbot with a long lease were in the region of £242,600. The mid-range amount of ground rent was £45 collected quarterly. The lease ended on 25 June 2093. Having 67 years unexpired we calculated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 exclusive of expenses.