Chances are that if you own a flat in Newbiggin By The Sea you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for decades to come.
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Lease extensions in Newbiggin By The Sea can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor 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 dealing with 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.
Ollie owned a 2 bedroom flat in Newbiggin By The Sea on the market with a lease of a little over 72 years outstanding. Ollie informally spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Ollie to exercise his statutory right. Ollie procured expert legal guidance and secured satisfactory resolution informally and sell the property.
In 2009 we were called by Ms Grace Harris who, having bought a recently refurbished flat in Newbiggin By The Sea in July 2011. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Comparable residencies in Newbiggin By The Sea with 100 year plus lease were in the region of £200,800. The mid-range amount of ground rent was £65 collected every twelve months. The lease lapsed on 19 November 2085. Given that there were 60 years unexpired we approximated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 not including costs.
Mr and Mrs. Y Vincent moved into a garden flat in Newbiggin By The Sea in February 2010. We are asked if we could approximate the price could be to extend the lease by an additional years. Comparative premises in Newbiggin By The Sea with a long lease were worth £255,000. The mid-range ground rent payable was £50 billed every twelve months. The lease expiry date was in 2096. Taking into account 71 years unexpired we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.