With a domestic leasehold property in Newark, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider 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 notably once there are less than 80 years remaining. Residents in Newark with a lease approaching 81 years remaining should seriously consider extending it sooner than later. When the lease term has under eighty years outstanding, under the relevant statute the freeholder can calculate and levy a greater amount, based on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you better control over the value of your Newark leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Samuel owned a conversion flat in Newark being sold with a lease of a few days over fifty eight years outstanding. Samuel informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant 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 doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Samuel to exercise his statutory right. Samuel procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2011 we were e-mailed by Dr Kate Sharif who, having owned a basement apartment in Newark in June 2005. The dilemma was if we could estimate the premium would be to extend the lease by an additional years. Comparative properties in Newark with a long lease were in the region of £168,800. The mid-range ground rent payable was £60 invoiced yearly. The lease lapsed in 2081. Considering the 55 years unexpired we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including professional charges.
Mrs Chantelle Ward took over the lease of a purpose-built apartment in Newark in February 1999. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparable premises in Newark with an extended lease were in the region of £235,200. The mid-range amount of ground rent was £45 billed quarterly. The lease expiry date was on 3 October 2092. Considering the 66 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including legals.