The market value of Newport Pagnell leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the remaining term is less than eighty years
Leasehold premises in Newport Pagnell with in excess of one hundred years unexpired 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 home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Newport Pagnell leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Noah was the the leasehold owner of a high value apartment in Newport Pagnell being marketed with a lease of a little over 61 years remaining. Noah informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Noah to exercise his statutory right. Noah obtained expert advice and secured an acceptable deal informally and sell the property.
In 2011 we were e-mailed by Dr B Morel who, having owned a purpose-built flat in Newport Pagnell in October 2001. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar properties in Newport Pagnell with an extended lease were valued about £270,000. The mid-range ground rent payable was £55 collected monthly. The lease came to a finish on 19 April 2101. Considering the 75 years unexpired we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.
Mrs Kate Robinson acquired a first floor flat in Newport Pagnell in May 1996. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Similar homes in Newport Pagnell with a long lease were valued about £173,800. The mid-range ground rent payable was £60 invoiced quarterly. The lease concluded on 12 September 2081. Taking into account 55 years unexpired we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus professional charges.