As the the remaining lease term of a Newcastle under Lyme residential lease decreases so does its value and therefore the value of your property. If the lease has, more than 125 years to run then this decrease may be fractional however there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Newcastle under Lyme will qualify for this right; however a conveyancing solicitor will be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you increased control over the value of your Newcastle under Lyme leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Logan, started to get close to the 80-year threshold with the lease on his basement flat in Newcastle under Lyme. Having bought his home 19 years previously, the lease term was of no importance. As luck would have it, he realised he needed to take steps soon on Extending the lease. Logan was able to extend his lease just ahead of time in May. Logan and the landlord ultimately settled on the final figure of £5,500 . If he had missed the deadline, the amount would have increased by at least £850.
In 2009 we were phoned by Mr and Mrs. C Sánchez who, having bought a basement flat in Newcastle under Lyme in June 2002. We are asked if we could estimate the price would be for a 90 year lease extension. Similar flats in Newcastle under Lyme with a long lease were in the region of £198,800. The average amount of ground rent was £55 invoiced monthly. The lease expired on 5 November 2081. Taking into account 55 years unexpired we estimated the premium to the landlord to extend the lease to be between £33,300 and £38,400 exclusive of costs.
In 2012 we were e-mailed by Dr S Rose who, having completed a newly refurbished apartment in Newcastle under Lyme in July 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Identical homes in Newcastle under Lyme with an extended lease were in the region of £300,000. The average ground rent payable was £50 billed every twelve months. The lease lapsed on 1 January 2101. Having 75 years unexpired we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.