For anyone whose Newton Aycliffe home is held on a long lease, our message is clear – if nothing is done, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension.
Leasehold properties in Newton Aycliffe with over one hundred years unexpired on the lease are often 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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Newton Aycliffe,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Newton Aycliffe valuers.
Trailing lengthy correspondence with the landlord of her ground floor flat in Newton Aycliffe, Caitlin started the lease extension process as the eighty year mark was swiftly nearing. The lease extension was concluded in August 2009. The freeholder’s costs were negotiated to under 500 GBP.
Ms Morgan Hernández owned a purpose-built apartment in Newton Aycliffe in May 2002. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Similar homes in Newton Aycliffe with a long lease were valued around £260,200. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease concluded on 3 October 2092. Given that there were 66 years outstanding we calculated the premium to the landlord for the lease extension to be within £15,200 and £17,600 plus costs.
Ms Sian Stewart moved into a first floor apartment in Newton Aycliffe in November 1995. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar flats in Newton Aycliffe with an extended lease were worth £198,800. The average amount of ground rent was £55 invoiced monthly. The lease finished in 2081. Considering the 55 years left we estimated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 not including expenses.