Newport Pagnell leases on domestic properties are gradually losing value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. If lease term is under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Newport Pagnell will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In some circumstances you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Newport Pagnell,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Newport Pagnell valuers.
Freddie owned a conversion apartment in Newport Pagnell on the market with a lease of just over 72 years remaining. Freddie informally approached his landlord being a well known London-based freehold company for a lease extension. The freeholder 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 due on a lease extension were Freddie to invoke his statutory right. Freddie procured expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Last Summer we were approach by Dr F Collins , who was assigned a lease of a basement flat in Newport Pagnell in May 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative premises in Newport Pagnell with an extended lease were valued around £250,000. The average ground rent payable was £50 invoiced yearly. The lease terminated on 10 September 2094. Considering the 69 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.
Dr Samuel James moved into a ground floor apartment in Newport Pagnell in April 1998. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Identical premises in Newport Pagnell with an extended lease were valued about £290,000. The average ground rent payable was £60 billed yearly. The lease ended in 2105. Considering the 80 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of fees.