Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Newbridge. Clearly, the length of lease remaining reduces as time goes by. This is often ignored and only raises itself as an issue when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Newbridge have the legal entitlement to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please give due attention before putting off your Newbridge lease extension. Putting off the cost now simply increases the price you will eventually have to pay for a lease extension
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Newbridge can be a difficult process. We recommend you procure guidance from a conveyancer 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 Newbridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful correspondence with the freeholder of her first floor apartment in Newbridge, Paige started the lease extension process just as the lease was coming close to the critical 80-year deadline. The legal work completed in June 2013. The landlord’s costs were negotiated to less than 550 pounds.
Mr H Sharif moved into a purpose-built apartment in Newbridge in June 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Similar flats in Newbridge with a long lease were valued about £183,600. The average amount of ground rent was £65 collected yearly. The lease expired on 8 November 2082. Considering the 57 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.
In 2010 we were called by Mrs Natalie Pérez who, having acquired a recently refurbished apartment in Newbridge in November 2010. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Similar residencies in Newbridge with 100 year plus lease were valued about £245,000. The mid-range amount of ground rent was £50 collected quarterly. The lease ended in 2093. Given that there were 68 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.