Chances are that where you own a flat in Newent you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
The lawyers that we work with procure Newent lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Ollie was the the leasehold owner of a high value flat in Newent being sold with a lease of a few days over 61 years remaining. Ollie on an informal basis contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Ollie to invoke his statutory right. Ollie procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last Spring we were phoned by Mr and Mrs. F Baker , who was assigned a lease of a first floor flat in Newent in March 2009. The question was if we could estimate the premium would likely be to prolong the lease by 90 years. Comparable homes in Newent with a long lease were valued around £218,400. The mid-range ground rent payable was £60 collected per annum. The lease elapsed on 1 March 2085. Given that there were 59 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 not including legals.
In 2011 we were contacted by Dr I Cooper who, having took over the lease of a garden apartment in Newent in November 1996. We are asked if we could estimate the price would be to prolong the lease by an additional years. Identical premises in Newent with an extended lease were in the region of £205,000. The mid-range amount of ground rent was £50 billed per annum. The lease concluded on 14 May 2105. Given that there were 79 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including legals.