It’s an underpublicised truth that a Newton Aycliffe residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Newton Aycliffe property market.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining falls below eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Newton Aycliffe will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the process.
It is generally accepted that a property with in excess of 100 years remaining is worth roughly 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 many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Newton Aycliffe,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Newton Aycliffe valuers.
Subsequent to unsuccessful correspondence with the freeholder of her leasehold apartment in Newton Aycliffe, Courtney commenced the lease extension process just as the lease was approaching the crucial 80-year threshold. The legal work was finalised in May 2008. The landlord’s fees were kept to an absolute minimum.
Mrs O Wilson bought a one bedroom apartment in Newton Aycliffe in June 2008. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Similar residencies in Newton Aycliffe with a long lease were worth £181,600. The mid-range amount of ground rent was £55 invoiced per annum. The lease lapsed in 2077. Considering the 52 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 plus legals.
In 2009 we were e-mailed by Mr and Mrs. R Walker who, having was assigned a lease of a studio flat in Newton Aycliffe in February 2002. We are asked if we could approximate the price would be to prolong the lease by an additional years. Identical homes in Newton Aycliffe with a long lease were worth £290,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease ran out on 8 June 2097. Given that there were 72 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.