The market value of Newton Aycliffe leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate significantly once the unexpired lease term is below than 80 years
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 Aycliffe can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor 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 dealing with 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.
Lucas owned a high value apartment in Newton Aycliffe on the market with a lease of a little over 72 years unexpired. Lucas informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Lucas to invoke his statutory right. Lucas obtained expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
Last Autumn we were e-mailed by Ms C Ramírez , who purchased a ground floor flat in Newton Aycliffe in July 1996. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Identical premises in Newton Aycliffe with a long lease were valued around £243,000. The average amount of ground rent was £65 collected yearly. The lease came to a finish on 22 May 2088. Taking into account 63 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 not including professional charges.
Mr and Mrs. T Torres purchased a first floor flat in Newton Aycliffe in September 2011. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Comparative flats in Newton Aycliffe with an extended lease were valued about £181,600. The mid-range amount of ground rent was £55 billed yearly. The lease expired in 2077. Considering the 52 years remaining we calculated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of professional charges.