The only way is down when it comes to Newbridge lease terms. Newbridge properties that have a remaining term lower than eighty years will de-escalate in value at a rapid rate, and the cost to extend your lease will rise.
Leasehold residencies in Newbridge with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| 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; |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Newbridge can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor 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 in-depth market knowledge dealing with Newbridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful correspondence with the landlord of her ground floor apartment in Newbridge, Bethan started the lease extension process as the 80 year threshold was swiftly advancing. The transaction was finalised in September 2014. The freeholder’s charges were kept to an absolute minimum.
Last Autumn we were called by Dr Daisy Lefebvre , who purchased a garden apartment in Newbridge in May 2004. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Comparative properties in Newbridge with an extended lease were in the region of £191,000. The mid-range ground rent payable was £65 billed every twelve months. The lease ran out in 2083. Having 58 years left we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 not including fees.
In 2012 we were called by Mr Alex Mercier who, having moved into a one bedroom apartment in Newbridge in September 1998. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable properties in Newbridge with 100 year plus lease were worth £250,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease lapsed on 21 February 2094. Taking into account 69 years left we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.