It’s an underpublicised certainty that a Newbiggin By The Sea residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Newbiggin By The Sea property market.Once your lease nears 85ish years, you should start considering a lease extension. If lease term falls below eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Newbiggin By The Sea will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the process.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence 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. |
| Chelsea 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. |
| 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 Newbiggin By The Sea,the lease extension solicitors 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 Newbiggin By The Sea valuers.
Callum owned a 2 bedroom flat in Newbiggin By The Sea on the market with a lease of just over 59 years unexpired. Callum on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Callum to exercise his statutory right. Callum procured expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
Last Summer we were e-mailed by Mr and Mrs. D Brooks , who acquired a studio apartment in Newbiggin By The Sea in January 2000. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparable flats in Newbiggin By The Sea with an extended lease were worth £218,000. The average amount of ground rent was £45 invoiced monthly. The lease concluded in 2089. Having 63 years unexpired we calculated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 plus professional charges.
Last year we were contacted by Mrs Kate Nguyen , who acquired a studio flat in Newbiggin By The Sea in March 2009. The question was if we could estimate the price would likely be for a 90 year lease extension. Similar flats in Newbiggin By The Sea with an extended lease were worth £265,000. The mid-range ground rent payable was £50 collected monthly. The lease expiry date was in 2100. Taking into account 74 years outstanding we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.