Newbury leases on domestic properties are gradually losing value. if your lease has about ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Newbury will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain cases you may not qualify. There are also strict timetables and formalities to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | 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. |
Lease extensions in Newbury can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in lease extensions.
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 Newbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leon was the the leasehold owner of a 2 bedroom flat in Newbury on the market with a lease of just over sixty years unexpired. Leon informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Leon to invoke his statutory right. Leon obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
In 2010 we were called by Mr and Mrs. K Martinez who, having completed a basement flat in Newbury in August 1995. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Newbury with 100 year plus lease were in the region of £267,600. The average ground rent payable was £65 collected every twelve months. The lease expired in 2092. Taking into account 67 years left we calculated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 not including expenses.
Mrs Chelsea Anderson moved into a one bedroom flat in Newbury in February 1995. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Identical flats in Newbury with 100 year plus lease were in the region of £206,200. The average amount of ground rent was £60 collected per annum. The lease expired in 2081. Considering the 56 years unexpired we estimated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 plus expenses.