The closer a residential lease in Newark gets to zero years unexpired, the more it reduces the value of the property. If the lease has, over 100 years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should consider extending sooner as opposed to later. The majority of flat owners in Newark will qualify for this right; that being said a conveyancer can advise whether you qualify for a lease extension. 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.
Leasehold properties in Newark with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service gives you better control over the value of your Newark leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Alexander was the the leasehold proprietor of a studio apartment in Newark being marketed with a lease of a little over 59 years remaining. Alexander informally approached his freeholder a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms 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. Ordinarily, ground rent would not be payable on a lease extension were Alexander to exercise his statutory right. Alexander obtained expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Mr and Mrs. Y Hill bought a newly refurbished flat in Newark in July 1999. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Similar homes in Newark with a long lease were worth £183,600. The mid-range amount of ground rent was £65 invoiced annually. The lease elapsed on 11 November 2082. Having 57 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus legals.
In 2010 we were e-mailed by Mr J Campbell who, having moved into a newly refurbished apartment in Newark in April 2012. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable premises in Newark with a long lease were valued around £245,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease terminated in 2093. Given that there were 68 years unexpired we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.