Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in New Waltham. Inevitably, the term of lease left reduces over time. This is often overlooked and only becomes a problem when the residence has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in New Waltham have the right to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please give due attention before putting off your New Waltham lease extension. Putting off that expense now only increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 Waltham,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with New Waltham valuers.
Ben owned a 2 bedroom flat in New Waltham on the market with a lease of a little over 61 years left. Ben informally contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Ben to exercise his statutory right. Ben obtained expert advice and secured an acceptable deal without resorting to tribunal and readily saleable.
Last Christmas we were called by Dr T Gunderson , who owned a one bedroom flat in New Waltham in May 2000. The question was if we could approximate the premium could be to prolong the lease by a further 90 years. Comparative homes in New Waltham with an extended lease were in the region of £186,000. The average amount of ground rent was £65 collected annually. The lease lapsed in 2084. Having 58 years outstanding we approximated the premium to the landlord for the lease extension to be within £24,700 and £28,600 plus legals.
Ms Y Brooks owned a one bedroom flat in New Waltham in July 1998. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Similar homes in New Waltham with a long lease were worth £250,000. The average ground rent payable was £50 billed per annum. The lease expiry date was on 16 October 2095. Having 69 years unexpired we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.