With a domestic leasehold premises in Newburn, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are less than 80 years remaining. Anyone in Newburn with a lease nearing 81 years remaining should seriously think of extending it sooner than later. When a lease has below 80 years left, under the relevant legislation the landlord can calculate and demand a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Newburn with more than 100 years unexpired 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Newburn can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring Newburn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Joshua, came dangerously near to the eighty-year mark with the lease on his one bedroom apartment in Newburn. Having bought his property 19 years ago, the unexpired term was of little significance. Thankfully, he recognised he needed to take steps soon on Extending the lease. Joshua was able to extend his lease just ahead of time last April. Joshua and the landlord in the end settled on sum of £5,500 . If the lease had slid lower than eighty years, the sum would have become more costly by a minimum £1,150.
Dr Ollie Allen completed a purpose-built apartment in Newburn in August 1995. We are asked if we could estimate the price could be to extend the lease by an additional years. Comparable homes in Newburn with 100 year plus lease were in the region of £201,200. The mid-range ground rent payable was £55 invoiced per annum. The lease lapsed on 20 March 2081. Having 56 years outstanding we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus legals.
In 2014 we were called by Dr F Rodríguez who, having was assigned a lease of a studio apartment in Newburn in February 1997. The question was if we could estimate the premium would likely be for a ninety year lease extension. Similar flats in Newburn with an extended lease were in the region of £300,000. The average amount of ground rent was £50 invoiced monthly. The lease concluded on 9 August 2101. Given that there were 76 years remaining we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of expenses.