There is no doubt about it a leasehold flat or house in Newbiggin By The Sea is a wasting asset as a result of the shortening lease. Where the residual term has, over one hundred years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has less than eighty years left 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 reason why you should consider extending without delay. Many flat owners in Newbiggin By The Sea will meet the qualifying criteria; however a conveyancer can advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Newbiggin By The Sea with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service gives you enhanced control over the value of your Newbiggin By The Sea leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy discussions with the landlord of her studio apartment in Newbiggin By The Sea, Leah commenced the lease extension process just as her lease was approaching the crucial eighty-year deadline. The transaction completed in September 2014. The freeholder’s costs were kept to an absolute minimum.
Last Autumn we were contacted by Mrs M Cooper , who was assigned a lease of a purpose-built apartment in Newbiggin By The Sea in January 2004. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Identical premises in Newbiggin By The Sea with a long lease were in the region of £270,000. The mid-range amount of ground rent was £55 collected monthly. The lease concluded in 2101. Taking into account 75 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
Mrs Rachel Parker acquired a first floor apartment in Newbiggin By The Sea in February 2007. The question was if we could approximate the premium would likely be to extend the lease by ninety years. Identical flats in Newbiggin By The Sea with a long lease were valued about £168,800. The average amount of ground rent was £60 collected quarterly. The lease expired on 4 November 2081. Considering the 55 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including legals.