Newark on Trent residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Lease extensions in Newark on Trent can be a difficult process. We recommend you procure professional help from a conveyancing solicitor 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 Newark on Trent lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Omar owned a conversion apartment in Newark on Trent being sold with a lease of fraction over 72 years remaining. Omar informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Omar to exercise his statutory right. Omar obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
In 2010 we were e-mailed by Mr H Díaz who, having acquired a one bedroom apartment in Newark on Trent in July 2000. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparative flats in Newark on Trent with a long lease were worth £245,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ended in 2094. Given that there were 68 years outstanding we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.
In 2012 we were called by Dr C Phillips who, having was assigned a lease of a basement flat in Newark on Trent in April 1998. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparable flats in Newark on Trent with a long lease were in the region of £285,000. The average ground rent payable was £55 invoiced every twelve months. The lease elapsed on 20 July 2105. Taking into account 79 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including legals.