With a domestic leasehold property in Newark, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Leasehold owners in Newark with a lease drawing near to 81 years left should seriously consider extending it without delay. Once a lease has less than 80 years left, under the relevant statute the landlord can calculate and charge a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Newark lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In the wake of eight months of unsuccessful correspondence with the landlord of her ground floor apartment in Newark, Alexandra started the lease extension process as the 80 year mark was swiftly advancing. The legal work completed in September 2006. The freeholder’s fees were restricted to a tad over 450 pounds.
Mr and Mrs. R Turner completed a basement flat in Newark in August 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Identical properties in Newark with 100 year plus lease were in the region of £246,800. The mid-range amount of ground rent was £60 billed per annum. The lease expiry date was on 22 February 2076. Considering the 50 years outstanding we estimated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 plus costs.
Last month we were phoned by Ms L Adams , who acquired a basement apartment in Newark in January 2005. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar premises in Newark with a long lease were valued around £203,200. The average ground rent payable was £65 invoiced yearly. The lease concluded on 4 June 2087. Considering the 61 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 not including costs.