With a long leasehold premises in Newquay, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly once there are fewer than eighty years remaining. Anyone in Newquay with a lease drawing near to 81 years left should seriously think of extending it without delay. Once a lease has less than eighty years left, under the current statute the landlord is entitled to calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
The conveyancing solicitors that we work with undertake Newquay lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Samuel was the the leasehold proprietor of a studio flat in Newquay on the market with a lease of a few days over sixty years remaining. Samuel on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Samuel to exercise his statutory right. Samuel obtained expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
Last month we were called by Mr J Edwards , who bought a basement flat in Newquay in July 2003. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Identical properties in Newquay with an extended lease were worth £225,800. The mid-range amount of ground rent was £60 invoiced yearly. The lease expiry date was in 2086. Given that there were 60 years remaining we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 plus professional charges.
Last year we were e-mailed by Mr U Turner , who bought a one bedroom apartment in Newquay in August 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Identical properties in Newquay with a long lease were worth £210,000. The average ground rent payable was £50 billed quarterly. The lease lapsed on 7 November 2106. Considering the 80 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.