The only way is down when it comes to Newquay lease terms. Newquay leaseholds that have a residual term less than than 80 years will de-escalate in value at a rapid rate, and the cost of extending your lease will increase.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Newquay can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Newquay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the freeholder of her leasehold flat in Newquay, Amber initiated the lease extension process just as the lease was nearing the crucial eighty-year mark. The legal work completed in May 2006. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. C Gómez purchased a basement flat in Newquay in April 2008. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Similar properties in Newquay with a long lease were valued around £205,000. The mid-range amount of ground rent was £50 billed quarterly. The lease expired on 14 November 2105. Taking into account 79 years unexpired we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.
In 2009 we were phoned by Mr G Walker who, having owned a basement flat in Newquay in March 2006. The dilemma was if we could estimate the price could be for a ninety year lease extension. Identical properties in Newquay with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £65 collected yearly. The lease ran out on 8 July 2094. Taking into account 68 years left we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.