As the the remaining lease term of a Newbridge residential lease decreases so does its value and therefore the value of your property. Where the lease has, beyond one hundred years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Many flat owners in Newbridge will qualify for this right; however a conveyancing solicitor can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Newbridge with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless 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 in-depth market knowledge and the close ties they enjoy with Newbridge valuers.
In 2014 Joshua, came seriously close to the eighty-year mark with the lease on his one bedroom flat in Newbridge. Having bought his flat twenty years previously, the unexpired term was of minimal bearing. by good luck, he became aware that he would imminently be paying an escalated premium for a lease extension. Joshua was able to extend his lease at the eleventh hour in June. Joshua and the landlord who owned the flat above subsequently agreed on an amount of £6,000 . If he had missed the deadline, the premium would have become more exhorbitant by a minimum £925.
In 2012 we were e-mailed by Mr H Gray who, having moved into a recently refurbished flat in Newbridge in April 2011. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparative residencies in Newbridge with a long lease were valued about £200,800. The average amount of ground rent was £65 invoiced yearly. The lease finished in 2081. Given that there were 60 years outstanding we approximated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 not including fees.
Mr A Vincent owned a one bedroom flat in Newbridge in July 1995. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable flats in Newbridge with an extended lease were in the region of £255,000. The average ground rent payable was £50 billed per annum. The lease ended in 2092. Given that there were 71 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.