Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in New Rossington. Clearly, the length of lease left shortens as time goes by. This is often overlooked and only becomes a problem when the property has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in New Rossington have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. You should give careful consideration before delaying your New Rossington lease extension. Putting off the cost now only increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| Yorkshire Building Society | 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. |
Lease extensions in New Rossington can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 New Rossington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Jacob, came very near to the 80-year mark with the lease on his basement apartment in New Rossington. In buying his home two decades ago, the length of the lease was of minimal relevance. Thankfully, it dawned on him that he needed to take action soon on Extending the lease. Jacob was able to extend his lease just ahead of time last January. Jacob and the landlord who owned the flat above subsequently agreed on the final figure of £5,000 . If he not met the deadline, the figure would have increased by a minimum £925.
Last Summer we were approach by Dr Edward Clarke , who completed a ground floor apartment in New Rossington in January 2009. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparative residencies in New Rossington with 100 year plus lease were valued about £210,000. The average amount of ground rent was £50 billed per annum. The lease came to a finish in 2106. Having 80 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of costs.
In 2012 we were called by Mr and Mrs. G Watson who, having acquired a basement apartment in New Rossington in August 2000. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable flats in New Rossington with a long lease were valued about £275,000. The mid-range ground rent payable was £45 collected per annum. The lease lapsed on 12 July 2095. Given that there were 69 years remaining we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.