With a residential leasehold property in Newton Abbot, you are actually buying an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Residents in Newton Abbot with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once a lease has fewer than eighty years outstanding, under the current Act the freeholder can calculate and charge a greater premium, based on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Newton Abbot with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | |
| National Westminster Bank | |
| Santander | |
| The Mortgage Works | |
| Virgin |
Irrespective of whether you are a tenant or a landlord in Newton Abbot,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Newton Abbot valuers.
Hugo was the the leasehold owner of a conversion flat in Newton Abbot being sold with a lease of a few days over fifty eight years outstanding. Hugo on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Hugo to invoke his statutory right. Hugo obtained expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last Christmas we were e-mailed by Ms Kelsey Robinson , who completed a one bedroom apartment in Newton Abbot in February 2007. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Comparable homes in Newton Abbot with 100 year plus lease were worth £193,400. The average ground rent payable was £65 collected every twelve months. The lease terminated on 27 July 2085. Given that there were 59 years left we estimated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of fees.
Last month we were called by Dr L Bertrand , who purchased a recently refurbished flat in Newton Abbot in March 2010. We are asked if we could estimate the price could be to prolong the lease by an additional years. Comparative residencies in Newton Abbot with a long lease were worth £255,000. The mid-range ground rent payable was £50 invoiced yearly. The lease concluded on 2 January 2096. Taking into account 70 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £10,500 and £12,000 plus costs.