The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Newcastle under Lyme have the right to extend the lease for an additional ninety years in accordance with statute. Please give careful consideration before delaying your Newcastle under Lyme lease extension. Putting off that expense today simply increases the premium you will ultimately be required to pay to extend the lease.
Leasehold residencies in Newcastle under Lyme with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Newcastle under Lyme,the lease extension lawyers 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 Newcastle under Lyme valuers.
Kian owned a conversion apartment in Newcastle under Lyme on the market with a lease of a few days over 72 years left. Kian on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Kian to exercise his statutory right. Kian obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
Mrs T James acquired a studio flat in Newcastle under Lyme in March 2000. The dilemma was if we could approximate the price could be to prolong the lease by a further 90 years. Comparative residencies in Newcastle under Lyme with 100 year plus lease were worth £208,600. The mid-range ground rent payable was £60 invoiced annually. The lease termination date was on 25 April 2082. Having 57 years unexpired we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 plus fees.
In 2014 we were approached by Mr and Mrs. B Roberts who, having took over the lease of a garden apartment in Newcastle under Lyme in November 2003. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable properties in Newcastle under Lyme with 100 year plus lease were valued about £200,000. The mid-range ground rent payable was £50 collected quarterly. The lease ended on 14 October 2102. Given that there were 77 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.