There is no doubt about it a leasehold flat or house in Newcastle under Lyme is a wasting asset as a result of the diminishing lease term. If the lease has, in excess of one hundred years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner rather than later. Many flat owners in Newcastle under Lyme will qualify for this right; nevertheless a conveyancing solicitor should be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Newcastle under Lyme with more than one hundred years outstanding 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 premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Halifax | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Yorkshire Building Society |
Retaining our service gives you enhanced control over the value of your Newcastle under Lyme leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Ollie owned a conversion flat in Newcastle under Lyme on the market with a lease of just over 61 years left. Ollie on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Ollie to exercise his statutory right. Ollie obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.
In 2014 we were phoned by Dr Oliver Hill who, having moved into a one bedroom flat in Newcastle under Lyme in February 1995. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Identical premises in Newcastle under Lyme with a long lease were worth £267,600. The mid-range ground rent payable was £65 billed yearly. The lease lapsed on 15 March 2093. Considering the 67 years left we estimated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 plus fees.
Mrs Niamh Rivera purchased a one bedroom apartment in Newcastle under Lyme in May 2009. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparative properties in Newcastle under Lyme with 100 year plus lease were worth £206,200. The mid-range ground rent payable was £60 invoiced yearly. The lease lapsed in 2082. Having 56 years remaining we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of professional charges.