The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Newbury may extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Newbury lease extension. Shelving the costs today simply increases the amount you will ultimately be required to pay to extend the lease.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Newbury,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Newbury valuers.
After protracted correspondence with the freeholder of her first floor apartment in Newbury, Paige started the lease extension process as the 80 year threshold was swiftly approaching. The transaction completed in April 2005. The landlord’s costs were kept to an absolute minimum.
Last Spring we were contacted by Dr Anna Flores , who took over the lease of a newly refurbished flat in Newbury in May 2001. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by an additional years. Similar properties in Newbury with an extended lease were in the region of £257,800. The average ground rent payable was £65 collected annually. The lease ran out in 2091. Given that there were 65 years remaining we calculated the premium to the landlord for the lease extension to be between £18,100 and £20,800 exclusive of costs.
Last month we were called by Mr and Mrs. L André , who acquired a purpose-built flat in Newbury in November 2003. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical residencies in Newbury with a long lease were valued around £191,400. The mid-range ground rent payable was £55 invoiced every twelve months. The lease finished on 7 March 2080. Taking into account 54 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 plus fees.