There is no doubt about it a leasehold property in New Waltham is a wasting asset as a result of the shortening lease. If the lease has, in excess of 125 years to run then this decrease may be of little impact that being said there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner rather than later. Many flat owners in New Waltham will qualify for this right; nevertheless a lawyer can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence 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; |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord 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 in-depth market knowledge and the close ties they enjoy with New Waltham valuers.
Two years ago Noah, came perilously close to the 80-year threshold with the lease on his two bedroom apartment in New Waltham. In buying his home two decades ago, the unexpired term was of minimal significance. by good luck, he noticed he needed to take steps soon on Extending the lease. Noah extended the lease just ahead of time in January. Noah and the landlord eventually agreed on the final figure of £6,000 . If the lease had slid below 80 years, the sum would have escalated by at least £900.
In 2009 we were approached by Dr James Morris who, having completed a one bedroom apartment in New Waltham in September 2010. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparable flats in New Waltham with a long lease were valued about £285,000. The average amount of ground rent was £55 billed quarterly. The lease lapsed on 8 November 2105. Considering the 79 years unexpired we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of legals.
Dr N Dupont acquired a first floor flat in New Waltham in April 1995. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparative premises in New Waltham with 100 year plus lease were worth £193,400. The average amount of ground rent was £65 collected per annum. The lease lapsed in 2085. Having 59 years unexpired we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of professional charges.