There is no doubt about it a leasehold property in Newton Aycliffe is a wasting asset as a result of the shortening lease. Where the lease has, in excess of one hundred years to run then this decrease may be of little impact that being said there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending without delay. Most flat owners in Newton Aycliffe will qualify for this right; nevertheless a conveyancing solicitor can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Using our service will provide you better control over the value of your Newton Aycliffe leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Aaron, came perilously near to the eighty-year mark with the lease on his first floor flat in Newton Aycliffe. Having bought his flat two decades ago, the length of the lease was of no concern. by good luck, he noticed he needed to take action soon on Extending the lease. Aaron arranged for a lease extension at the eleventh hour last April. Aaron and the freeholder ultimately settled on sum of £5,500 . If he had missed the deadline, the price would have increased by at least £900.
Last Spring we were e-mailed by Mr and Mrs. H Gómez , who moved into a studio flat in Newton Aycliffe in July 1999. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Comparative flats in Newton Aycliffe with an extended lease were in the region of £285,000. The average ground rent payable was £45 collected quarterly. The lease elapsed on 24 March 2097. Having 71 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.
In 2010 we were e-mailed by Mrs Jennifer Hill who, having acquired a newly refurbished flat in Newton Aycliffe in April 2007. The question was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparable properties in Newton Aycliffe with an extended lease were in the region of £225,800. The mid-range ground rent payable was £60 collected quarterly. The lease lapsed in 2086. Considering the 60 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £24,700 and £28,600 not including legals.