When it comes to residential leasehold premises in Newbridge, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly when there are less than 80 years left. Residents in Newbridge with a lease drawing near to 81 years left should seriously think of extending it sooner than later. When the lease term has below 80 years remaining, under the relevant legislation the freeholder can calculate and charge a larger amount, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be equivalent in value to 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Newbridge,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Newbridge valuers.
Harrison was the the leasehold owner of a 2 bedroom apartment in Newbridge on the market with a lease of a few days over 61 years outstanding. Harrison informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Harrison to exercise his statutory right. Harrison procured expert advice and secured satisfactory deal informally and readily saleable.
Last November we were e-mailed by Mr J Cox , who acquired a purpose-built flat in Newbridge in February 2005. The question was if we could estimate the price would be for a 90 year lease extension. Similar flats in Newbridge with a long lease were worth £210,600. The average ground rent payable was £45 billed annually. The lease ended on 11 July 2087. Given that there were 62 years unexpired we approximated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 not including costs.
In 2011 we were approached by Dr V Collins who, having purchased a first floor flat in Newbridge in January 2004. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparative properties in Newbridge with a long lease were worth £265,000. The mid-range ground rent payable was £50 billed every twelve months. The lease finished in 2098. Having 73 years remaining we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.