Newburn leases on residential deteriorating in value. Where your lease has approximately 90 years remaining, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Newburn will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some situations you may not qualify. There are also strict deadlines and formalities to follow once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Newburn with in excess of 100 years remaining on the lease are sometimes regarded as a ‘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 maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you increased control over the value of your Newburn leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted negotiations with the freeholder of her two bedroom flat in Newburn, Jennifer commenced the lease extension process just as the lease was nearing the critical eighty-year deadline. The transaction completed in April 2015. The landlord’s charges were negotiated to less than 600 GBP.
Mr and Mrs. L Gómez moved into a studio flat in Newburn in February 2004. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparable residencies in Newburn with 100 year plus lease were worth £260,200. The mid-range ground rent payable was £65 billed yearly. The lease elapsed in 2092. Taking into account 66 years outstanding we calculated the premium to the landlord to extend the lease to be within £16,200 and £18,600 exclusive of expenses.
In 2012 we were called by Dr Caitlin Pérez who, having took over the lease of a studio flat in Newburn in March 2002. The question was if we could estimate the price could be to extend the lease by an additional years. Similar homes in Newburn with a long lease were valued about £198,800. The mid-range ground rent payable was £55 collected monthly. The lease finished in 2081. Having 55 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of costs.