Newton Aycliffe leases on domestic properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Newton Aycliffe will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not be entitled. There are also strict timetables and formalities to follow once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Newton Aycliffe can be a difficult process. We recommend you procure guidance from a conveyancer and valuer 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 procuring Newton Aycliffe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy correspondence with the landlord of her ground floor flat in Newton Aycliffe, Melissa started the lease extension process just as the lease was nearing the crucial 80-year threshold. The lease extension was concluded in October 2010. The landlord’s fees were kept to an absolute minimum.
In 2010 we were contacted by Dr I André who, having moved into a one bedroom apartment in Newton Aycliffe in January 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Comparable properties in Newton Aycliffe with a long lease were in the region of £174,200. The mid-range ground rent payable was £55 invoiced every twelve months. The lease terminated on 20 July 2076. Taking into account 51 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including legals.
In 2012 we were approached by Ms I Nguyen who, having took over the lease of a first floor flat in Newton Aycliffe in May 1995. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparative residencies in Newton Aycliffe with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 billed monthly. The lease finished in 2096. Given that there were 71 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including professional charges.