The re-sale value of a leasehold property in Newbridge depends on how long the lease has remaining. If it is near to or fewer than 80 years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the lease extension process when the lease still has 82 years to run so that formalities can be addressed in advance of the eighty year mark. Statute enables Newbridge qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Newbridge with in excess of 100 years remaining 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 home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | |
| Nationwide Building Society | |
| Santander | |
| TSB | |
| Virgin |
Retaining our service will provide you increased control over the value of your Newbridge leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful correspondence with the freeholder of her studio apartment in Newbridge, Courtney initiated the lease extension process just as her lease was nearing the critical 80-year threshold. The lease extension was concluded in August 2013. The freeholder’s fees were kept to an absolute minimum.
Mr Harrison Peterson bought a one bedroom apartment in Newbridge in October 1995. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparative homes in Newbridge with a long lease were in the region of £235,200. The mid-range amount of ground rent was £45 collected yearly. The lease ran out on 9 September 2092. Given that there were 66 years unexpired we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
Mrs C Smith completed a one bedroom flat in Newbridge in August 2006. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Identical homes in Newbridge with 100 year plus lease were valued about £275,000. The average ground rent payable was £55 billed per annum. The lease concluded on 7 June 2103. Taking into account 77 years unexpired we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of expenses.