For anyone whose Newport Pagnell home is held on a long lease, the message is clear – if you ignore the situation, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension.
Leasehold properties in Newport Pagnell with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
Engaging our service will provide you better 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 want 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.
Zachary was the the leasehold proprietor of a studio flat in Newport Pagnell being sold with a lease of a few days over fifty eight years outstanding. Zachary informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Zachary to invoke his statutory right. Zachary procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
Mr and Mrs. N Pérez acquired a one bedroom flat in Newport Pagnell in August 2005. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable residencies in Newport Pagnell with an extended lease were in the region of £166,400. The mid-range amount of ground rent was £60 collected yearly. The lease ended on 12 February 2079. Given that there were 54 years remaining we approximated the premium to the landlord to extend the lease to be within £32,300 and £37,400 plus legals.
Dr F Roux bought a one bedroom apartment in Newport Pagnell in March 2001. The question was if we could estimate the price would likely be for a 90 year lease extension. Similar homes in Newport Pagnell with a long lease were in the region of £232,800. The average ground rent payable was £45 billed every twelve months. The lease elapsed in 2090. Taking into account 65 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus professional charges.