Newquay residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | 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. |
| 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. |
Lease extensions in Newquay can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in this area.
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 a wealth of experience 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.
Two years ago Andrew, came perilously close to the 80-year threshold with the lease on his two bedroom flat in Newquay. Having bought his property two decades ago, the length of the lease was of minimal importance. Luckily, he noticed he needed to take steps soon on Extending the lease. Andrew was able to extend his lease just under the wire in August. Andrew and the freeholder eventually settled on the final figure of £5,000 . If the lease had slid lower than 80 years, the amount would have escalated by a minimum £975.
In 2010 we were called by Mrs Natalie Collins who, having purchased a garden apartment in Newquay in September 2005. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Comparable residencies in Newquay with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced yearly. The lease concluded in 2098. Given that there were 72 years outstanding we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus fees.
In 2010 we were called by Mr and Mrs. P Cox who, having completed a basement flat in Newquay in October 2002. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Comparable premises in Newquay with an extended lease were valued around £233,200. The average ground rent payable was £60 billed yearly. The lease concluded in 2087. Given that there were 61 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 plus fees.