Newbridge leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Newbridge enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Newbridge you really ought to check if your lease has between seventy and 90 years left. There are compelling reasons why a Newbridge leaseholder with a lease having around eighty years left should take steps to ensure that a lease extension is actioned without delay
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Newbridge,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Newbridge valuers.
William was the the leasehold owner of a conversion apartment in Newbridge on the market with a lease of a little over 72 years left. William informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were William to exercise his statutory right. William obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.
In 2012 we were approached by Mr and Mrs. N White who, having completed a one bedroom flat in Newbridge in March 2004. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparative flats in Newbridge with an extended lease were valued about £200,800. The average ground rent payable was £65 collected per annum. The lease came to a finish in 2086. Taking into account 60 years unexpired we estimated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 plus costs.
In 2011 we were e-mailed by Dr G Ward who, having was assigned a lease of a first floor flat in Newbridge in April 2009. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparable premises in Newbridge with 100 year plus lease were valued about £255,000. The mid-range amount of ground rent was £50 collected yearly. The lease terminated in 2097. Considering the 71 years remaining we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.