The nearer a residential lease in Newbiggin By The Sea nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, over 125 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending without delay. Many flat owners in Newbiggin By The Sea will qualify for this right; nevertheless a conveyancer should be able to 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 less than two years.
Leasehold properties in Newbiggin By The Sea 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 property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Newbiggin By The Sea can be a difficult process. We recommend you procure guidance from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Newbiggin By The Sea lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Oscar was the the leasehold owner of a high value apartment in Newbiggin By The Sea being marketed with a lease of a little over 59 years outstanding. Oscar informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Oscar to invoke his statutory right. Oscar obtained expert advice and secured satisfactory resolution informally and ending up with a market value flat.
Last Winter we were approach by Mr and Mrs. G Wilson , who owned a recently refurbished flat in Newbiggin By The Sea in July 2003. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Comparative flats in Newbiggin By The Sea with a long lease were valued about £275,000. The average amount of ground rent was £55 billed yearly. The lease elapsed in 2103. Considering the 77 years as a residual term we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus legals.
In 2011 we were phoned by Mr and Mrs. G Walker who, having was assigned a lease of a garden apartment in Newbiggin By The Sea in November 1999. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Similar residencies in Newbiggin By The Sea with an extended lease were worth £183,600. The mid-range amount of ground rent was £65 billed per annum. The lease expired on 4 May 2083. Taking into account 57 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of legals.