Newcastle under Lyme leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Newcastle under Lyme tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Newcastle under Lyme you really ought to see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Newcastle under Lyme with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Halifax | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Yorkshire Building Society |
Lease extensions in Newcastle under Lyme can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 Newcastle under Lyme lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Owen was the the leasehold proprietor of a studio flat in Newcastle under Lyme being marketed with a lease of fraction over sixty years unexpired. Owen on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Owen to exercise his statutory right. Owen obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Last Winter we were called by Ms L Nguyen , who bought a studio flat in Newcastle under Lyme in July 2001. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical homes in Newcastle under Lyme with an extended lease were valued around £181,600. The average amount of ground rent was £55 invoiced monthly. The lease elapsed in 2078. Having 52 years remaining we approximated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of fees.
Last Autumn we were e-mailed by Dr Michael Gunderson , who took over the lease of a recently refurbished flat in Newcastle under Lyme in January 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Comparative residencies in Newcastle under Lyme with a long lease were valued about £290,000. The mid-range ground rent payable was £45 billed per annum. The lease lapsed on 10 March 2098. Taking into account 72 years unexpired we calculated the premium to the landlord for the lease extension to be between £11,400 and £13,200 not including costs.