Chances are that where you own a flat in Newbury you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Newbury,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Newbury valuers.
Off the back of unsuccessful discussions with the freeholder of her basement flat in Newbury, Eleanor commenced the lease extension process just as her lease was approaching the crucial eighty-year mark. The transaction completed in October 2012. The landlord’s fees were negotiated to below 600 pounds.
Mr and Mrs. Y Lefèvre took over the lease of a garden flat in Newbury in July 1997. The dilemma was if we could approximate the price could be to prolong the lease by a further 90 years. Comparative flats in Newbury with 100 year plus lease were in the region of £205,000. The average amount of ground rent was £50 invoiced every twelve months. The lease came to a finish on 2 February 2104. Given that there were 79 years remaining we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.
In 2011 we were phoned by Mr G Peterson who, having acquired a ground floor flat in Newbury in January 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparable flats in Newbury with a long lease were in the region of £275,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease elapsed on 10 September 2093. Having 68 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus costs.