With a domestic leasehold property in Newton Aycliffe, you are actually buying an entitlement to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are fewer than eighty years left. Leasehold owners in Newton Aycliffe with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. Once a lease has under eighty years outstanding, under the relevant legislation the landlord is entitled to calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Newton Aycliffe with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Newton Aycliffe,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Newton Aycliffe valuers.
Last October Ollie, started to get close to the eighty-year threshold with the lease on his leasehold flat in Newton Aycliffe. In buying his home twenty years ago, the unexpired term was of no bearing. As luck would have it, he noticed he would soon be paying way over the odds for Extending the lease. Ollie was able to extend his lease just ahead of time last September. Ollie and the landlord in the end agreed on the final figure of £6,000 . If he had missed the deadline, the amount would have gone up by a minimum £925.
Mr and Mrs. P Sharif owned a ground floor apartment in Newton Aycliffe in October 2012. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Similar properties in Newton Aycliffe with 100 year plus lease were valued around £275,000. The mid-range amount of ground rent was £45 collected per annum. The lease lapsed in 2095. Having 69 years remaining we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.
Mrs W Jones was assigned a lease of a one bedroom flat in Newton Aycliffe in May 2012. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable properties in Newton Aycliffe with 100 year plus lease were worth £216,000. The mid-range ground rent payable was £60 invoiced per annum. The lease concluded in 2084. Having 58 years outstanding we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of expenses.