Newport Pagnell leases on residential properties are gradually losing value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Newport Pagnell will usually qualify for a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In some situations you may not qualify. There are prescribed deadlines and formalities to comply with once the process is initiated so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Engaging 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 want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Sebastian, came precariously close to the 80-year threshold with the lease on his studio apartment in Newport Pagnell. Having purchased his property two decades ago, the lease term was of minimal interest. As luck would have it, he realised he needed to take action soon on a lease extension. Sebastian extended the lease at the eleventh hour in April. Sebastian and the landlord subsequently settled on an amount of £5,500 . If he not met the deadline, the amount would have escalated by a minimum £1,000.
Mr and Mrs. O Lewis was assigned a lease of a one bedroom apartment in Newport Pagnell in January 1997. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative flats in Newport Pagnell with 100 year plus lease were in the region of £176,200. The average amount of ground rent was £65 invoiced monthly. The lease expired on 23 May 2082. Considering the 56 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 plus legals.
Last Autumn we were called by Dr N Roberts , who moved into a newly refurbished apartment in Newport Pagnell in July 2012. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparative properties in Newport Pagnell with a long lease were valued about £242,600. The mid-range ground rent payable was £45 collected per annum. The lease termination date was on 27 July 2093. Having 67 years as a residual term we calculated the premium to the landlord to extend the lease to be within £11,400 and £13,200 not including expenses.