As the length of the unexpired term of a New Waltham domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, in excess of one hundred years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending without delay. Most flat owners in New Waltham will meet the qualifying criteria; that being said a conveyancer can advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same 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 |
|---|---|
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in New Waltham,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with New Waltham valuers.
Harrison was the the leasehold owner of a studio apartment in New Waltham being sold with a lease of fraction over 59 years remaining. Harrison on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Harrison to exercise his statutory right. Harrison obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2010 we were called by Mr T Allen who, having acquired a basement apartment in New Waltham in August 2000. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable residencies in New Waltham with a long lease were worth £227,800. The mid-range amount of ground rent was £45 invoiced monthly. The lease expired on 18 November 2090. Taking into account 65 years remaining we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of costs.
In 2011 we were e-mailed by Mr and Mrs. G Morgan who, having owned a studio flat in New Waltham in May 2005. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Identical residencies in New Waltham with 100 year plus lease were valued about £275,000. The average amount of ground rent was £55 invoiced per annum. The lease came to a finish on 10 February 2101. Considering the 76 years left we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.