The value of Newark leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the unexpired lease term is less than eighty years
Leasehold residencies in Newark with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a landlord in Newark,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 Newark valuers.
Last year Benjamin, came seriously close to the eighty-year threshold with the lease on his ground floor flat in Newark. Having purchased his property 18 years previously, the length of the lease was of minimal relevance. As luck would have it, he realised he needed to take steps soon on Extending the lease. Benjamin arranged for a lease extension just in the nick of time last September. Benjamin and the freeholder in the end agreed on a premium of £5,500 . If the lease had slid below 80 years, the price would have escalated by at least £1,100.
Mr and Mrs. V Alexander took over the lease of a one bedroom flat in Newark in April 2004. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparative premises in Newark with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease came to a finish on 19 April 2105. Considering the 79 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including costs.
Last month we were phoned by Dr Chelsea Hernández , who bought a one bedroom apartment in Newark in January 1995. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Identical flats in Newark with a long lease were in the region of £193,400. The mid-range ground rent payable was £65 collected quarterly. The lease ran out on 4 June 2085. Taking into account 59 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 plus legals.