Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Newbury Park. Inevitably, the period of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the residence needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Newbury Park have the right to extend the lease for an additional 90 years under statute. Do give careful attention before putting off your Newbury Park lease extension. Holding off the cost now simply increases the price you will ultimately incur for a lease extension
Leasehold residencies in Newbury Park with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. 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 |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your Newbury Park leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful negotiations with the freeholder of her first floor flat in Newbury Park, Rosie started the lease extension process as the eighty year threshold was quickly approaching. The transaction was concluded in October 2010. The landlord’s fees were kept to an absolute minimum.
Last month we were e-mailed by Ms O Reed , who acquired a ground floor flat in Newbury Park in June 2000. The question was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar residencies in Newbury Park with an extended lease were valued about £201,200. The mid-range ground rent payable was £55 billed yearly. The lease lapsed on 23 June 2081. Considering the 56 years unexpired we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus costs.
An example of a Lease Extension decision 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 was in relation to 1 flat. The unexpired residue of the current lease was 60.29 years.