When it comes to residential leasehold property in Newport Pagnell, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than 80 years left. Leasehold owners in Newport Pagnell with a lease approaching 81 years remaining should seriously consider extending it without delay. When the lease term has under eighty years outstanding, under the current Act the freeholder is entitled to calculate and demand a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Newport Pagnell with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Mortgage term plus 30 years subject to an overall minimum term of 70 years |
| 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. |
Engaging our service gives you increased control over the value of your Newport Pagnell leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Felix was the the leasehold owner of a conversion apartment in Newport Pagnell on the market with a lease of a few days over 59 years unexpired. Felix informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Felix to invoke his statutory right. Felix obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Dr Toby Laurent bought a purpose-built flat in Newport Pagnell in March 2012. The question was if we could approximate the premium would be for a ninety year extension to my lease. Identical premises in Newport Pagnell with a long lease were worth £242,600. The average ground rent payable was £45 collected annually. The lease expired in 2088. Having 67 years unexpired we estimated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of professional charges.
In 2010 we were contacted by Mr and Mrs. G Gómez who, having moved into a garden flat in Newport Pagnell in April 2008. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Comparative flats in Newport Pagnell with a long lease were worth £280,000. The average amount of ground rent was £55 billed quarterly. The lease end date was in 2099. Given that there were 78 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including costs.