The market value of a leasehold property in Newton Aycliffe depends on how many years the lease has remaining. If it is close to or less than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that a lease extension can be finalised prior to the eighty year mark. Statute entitles Newton Aycliffe qualifying lessees to an additional term of 90 years in addition to the unexpired term, at a nominal rent (zero ground rent). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Newton Aycliffe with over one hundred 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 home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Halifax |
Irrespective of whether you are a tenant or a landlord in Newton Aycliffe,the lease extension experts that we work with will always be willing 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.
Owen was the the leasehold owner of a high value flat in Newton Aycliffe on the market with a lease of just over 61 years left. Owen on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Owen to invoke his statutory right. Owen obtained expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
Mr W Stewart owned a one bedroom apartment in Newton Aycliffe in January 2011. We are asked if we could approximate the price could be for a 90 year extension to my lease. Identical properties in Newton Aycliffe with an extended lease were worth £198,800. The mid-range amount of ground rent was £55 collected monthly. The lease elapsed on 6 August 2081. Taking into account 55 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 not including legals.
Last year we were called by Mr and Mrs. C Michel , who owned a purpose-built apartment in Newton Aycliffe in September 2003. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable residencies in Newton Aycliffe with an extended lease were in the region of £300,000. The average ground rent payable was £50 collected yearly. The lease expired in 2101. Considering the 75 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.