When it comes to residential leasehold property in New Invention, you are actually purchasing a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are less than 80 years remaining. Residents in New Invention with a lease drawing near to 81 years left should seriously think of extending it without delay. When a lease has under 80 years outstanding, under the relevant legislation the landlord can calculate and demand a larger premium, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in New Invention with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a landlord in New Invention,the lease extension solicitors 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 New Invention valuers.
Following protracted negotiations with the landlord of her one bedroom apartment in New Invention, Rhiannon initiated the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The transaction was concluded in July 2015. The landlord’s charges were negotiated to about 450 GBP.
Mr and Mrs. U Morris bought a first floor flat in New Invention in September 1998. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Comparative flats in New Invention with a long lease were valued about £300,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ran out in 2102. Given that there were 76 years left we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.
In 2012 we were approached by Ms Lydia Ward who, having completed a one bedroom flat in New Invention in June 2005. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparable homes in New Invention with an extended lease were worth £257,800. The average amount of ground rent was £65 billed quarterly. The lease came to a finish on 16 August 2091. Given that there were 65 years remaining we calculated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus professional charges.