New Mills leases on domestic deteriorating in value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Flat owners in New Mills will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | |
| Leeds Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| TSB |
The conveyancing solicitors that we work with procure New Mills lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Luca was the the leasehold owner of a 2 bedroom apartment in New Mills on the market with a lease of fraction over 61 years outstanding. Luca informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Luca to invoke his statutory right. Luca procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
In 2010 we were contacted by Mr and Mrs. V James who, having purchased a studio apartment in New Mills in June 2001. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical homes in New Mills with 100 year plus lease were valued about £295,000. The average ground rent payable was £45 billed annually. The lease elapsed on 25 June 2100. Considering the 74 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
In 2012 we were e-mailed by Dr S Fournier who, having was assigned a lease of a studio apartment in New Mills in July 2007. The question 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 properties in New Mills with a long lease were in the region of £243,000. The mid-range amount of ground rent was £65 invoiced yearly. The lease expired on 3 April 2089. Considering the 63 years remaining we approximated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 not including professional charges.