The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in North Newbald have the legal entitlement to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Do give careful consideration before delaying your North Newbald lease extension. Putting off that expense now simply escalates the price you will ultimately be required to pay to extend the lease.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you enhanced control over the value of your North Newbald leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful negotiations with the freeholder of her garden apartment in North Newbald, Phoebe commenced the lease extension process just as the lease was approaching the critical 80-year threshold. The legal work was concluded in April 2006. The landlord’s costs were kept to an absolute minimum.
In 2012 we were called by Dr Aarav Harris who, having took over the lease of a garden flat in North Newbald in May 1997. The dilemma was if we could approximate the price would likely be to extend the lease by 90 years. Identical properties in North Newbald with an extended lease were worth £257,800. The mid-range ground rent payable was £65 invoiced quarterly. The lease lapsed in 2089. Taking into account 65 years outstanding we calculated the premium to the landlord to extend the lease to be between £17,100 and £19,800 not including expenses.
Last Christmas we were phoned by Dr U Bertrand , who purchased a purpose-built flat in North Newbald in October 1995. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable homes in North Newbald with an extended lease were worth £191,400. The average amount of ground rent was £55 billed monthly. The lease concluded on 25 January 2078. Considering the 54 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 plus costs.