There is no doubt about it a leasehold flat or house in Newent is a wasting asset as a result of the diminishing lease term. If the lease has, beyond 99 years to run then this decrease may be negligible however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Newent will meet the qualifying criteria; that being said a lawyer can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Newent with over 100 years left 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Newent can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in this area.
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 Newent lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Hugo was the the leasehold owner of a conversion flat in Newent being sold with a lease of a few days over 59 years left. Hugo informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Hugo to invoke his statutory right. Hugo procured expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Dr Jack Smith moved into a first floor flat in Newent in May 2006. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable flats in Newent with 100 year plus lease were worth £233,200. The average ground rent payable was £60 collected per annum. The lease termination date was in 2086. Taking into account 61 years remaining we calculated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 exclusive of costs.
Mr and Mrs. P Dupont completed a newly refurbished flat in Newent in June 2007. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Comparative residencies in Newent with 100 year plus lease were in the region of £166,800. The average amount of ground rent was £50 billed quarterly. The lease terminated in 2075. Given that there were 50 years left we approximated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of legals.