With a domestic leasehold property in New Waltham, you are actually buying a right to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than eighty years left. Anyone in New Waltham with a lease drawing near to 81 years remaining should seriously think of extending it without delay. Once the lease term has below 80 years remaining, under the current legislation the freeholder is entitled to calculate and charge a greater amount, assessed on a technical calculation, known as “marriage value” which is due.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises 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. |
| 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. |
| 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. |
| 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 Waltham can be a difficult process. We recommend you get professional help from a lawyer and surveyor 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 a wealth of experience dealing with New Waltham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
16 months ago Austin, came perilously near to the eighty-year mark with the lease on his one bedroom flat in New Waltham. In buying his flat 19 years ago, the lease term was of no bearing. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Austin extended the lease at the eleventh hour last April. Austin and the landlord eventually agreed on the final figure of £5,000 . If the lease had dipped lower than 80 years, the premium would have gone up by at least £850.
Dr Kian Norbert acquired a ground floor flat in New Waltham in February 2012. The dilemma was if we could approximate the price could be to prolong the lease by ninety years. Comparative homes in New Waltham with a long lease were in the region of £200,800. The mid-range amount of ground rent was £65 invoiced quarterly. The lease ended on 14 May 2086. Taking into account 60 years unexpired we approximated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 not including expenses.
In 2012 we were approached by Mr and Mrs. Y Rivera who, having acquired a studio apartment in New Waltham in October 2011. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Identical premises in New Waltham with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 collected yearly. The lease end date was in 2097. Having 71 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.