Newbury Park leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Newbury Park tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Newbury Park you must see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Newbury Park leaseholder with a lease having around 80 years remaining should take steps to ensure that a lease extension is put in place without delay
It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
The conveyancers that we work with procure Newbury Park lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Sebastian was the the leasehold proprietor of a conversion flat in Newbury Park on the market with a lease of fraction over 61 years outstanding. Sebastian on an informal basis spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Sebastian to invoke his statutory right. Sebastian obtained expert legal guidance and secured an acceptable resolution without going to tribunal and sell the flat.
Last Spring we were e-mailed by Mr and Mrs. B Hall , who moved into a garden flat in Newbury Park in July 2008. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Newbury Park with an extended lease were worth £191,400. The average ground rent payable was £55 invoiced every twelve months. The lease expired on 6 August 2080. Taking into account 54 years unexpired we approximated the premium to the landlord to extend the lease to be between £34,200 and £39,600 plus professional charges.
An example of a Lease Extension case for a Newbury Park property is 104 Coventry Road in July 2014. The Tribunal determined that the lease extension permium should be £22,896.15 This case affected 1 flat. The unexpired residue of the current lease was 60.29 years.