Newton Aycliffe residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
Leasehold premises in Newton Aycliffe with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancing solicitors that we work with handle Newton Aycliffe lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In 2014 Lewis, started to get close to the 80-year threshold with the lease on his purpose- built apartment in Newton Aycliffe. In buying his home twenty years ago, the unexpired term was of minimal significance. Luckily, it dawned on him that he needed to take action soon on Extending the lease. Lewis was able to extend his lease just under the wire last July. Lewis and the landlord in the end settled on sum of £5,500 . If he failed to meet the deadline, the figure would have escalated by at least £1,025.
In 2013 we were phoned by Dr Jamie Green who, having acquired a studio flat in Newton Aycliffe in September 2010. The dilemma was if we could approximate the premium would be to prolong the lease by 90 years. Similar properties in Newton Aycliffe with an extended lease were worth £189,000. The mid-range amount of ground rent was £55 billed yearly. The lease concluded in 2079. Taking into account 53 years remaining we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus costs.
In 2013 we were called by Ms Samantha Lee who, having took over the lease of a ground floor flat in Newton Aycliffe in March 2008. We are asked if we could estimate the premium could be to extend the lease by an additional years. Comparable properties in Newton Aycliffe with 100 year plus lease were in the region of £290,000. The mid-range ground rent payable was £45 billed every twelve months. The lease finished on 26 March 2099. Considering the 73 years left we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.