The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Newmarket can extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Newmarket lease extension. Shelving the costs today simply escalates the price you will ultimately be required to pay for a lease extension.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Newmarket can be a difficult process. We recommend you procure guidance from a conveyancing solicitor 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 in-depth market knowledge dealing with Newmarket lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Luca, started to get close to the 80-year threshold with the lease on his first floor flat in Newmarket. Having purchased his property 19 years previously, the unexpired term was of minimal significance. by good luck, he noticed he would imminently be paying an inflated amount for Extending the lease. Luca extended the lease just ahead of time in June. Luca and the landlord who owned the flat above subsequently agreed on an amount of £5,000 . If the lease had dropped to less than eighty years, the figure would have become more exhorbitant by at least £1,050.
Last Autumn we were e-mailed by Mr D Clark , who was assigned a lease of a basement flat in Newmarket in June 2000. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Identical properties in Newmarket with an extended lease were valued around £174,200. The mid-range ground rent payable was £55 billed every twelve months. The lease expiry date was in 2077. Given that there were 51 years outstanding we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of fees.
Last Winter we were e-mailed by Ms Niamh Díaz , who moved into a one bedroom apartment in Newmarket in May 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparative residencies in Newmarket with a long lease were worth £285,000. The mid-range amount of ground rent was £45 collected annually. The lease came to a finish in 2097. Given that there were 71 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus costs.