Unfortunately that a New Mills residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the New Mills property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher amount will be due. Most leasehold owners in New Mills will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the process.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Using our service gives you better control over the value of your New Mills leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful discussions with the freeholder of her two bedroom apartment in New Mills, Lucy started the lease extension process just as her lease was approaching the crucial eighty-year deadline. The legal work was finalised in July 2010. The landlord’s costs were kept to an absolute minimum.
Mr T Ali owned a garden flat in New Mills in July 1999. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Similar premises in New Mills with an extended lease were worth £208,600. The average amount of ground rent was £60 collected per annum. The lease came to a finish on 8 August 2083. Having 57 years unexpired we approximated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of professional charges.
In 2013 we were called by Mr and Mrs. F Ali who, having was assigned a lease of a purpose-built apartment in New Mills in May 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative residencies in New Mills with a long lease were valued about £200,000. The mid-range ground rent payable was £50 collected per annum. The lease expiry date was on 26 March 2103. Taking into account 77 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.