Newton Aycliffe leases on residential properties are gradually losing value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be due. Leasehold owners in Newton Aycliffe will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In certain circumstances you may not qualify. There are also strict timetables and procedures to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 conveyancer we work with provide it.
After protracted negotiations with the freeholder of her two bedroom flat in Newton Aycliffe, Robyn started the lease extension process as the eighty year threshold was quickly coming. The legal work was finalised in November 2013. The landlord’s charges were negotiated to below 650 GBP.
Mr and Mrs. R Mercier was assigned a lease of a purpose-built flat in Newton Aycliffe in April 2003. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Similar properties in Newton Aycliffe with a long lease were worth £216,000. The mid-range amount of ground rent was £60 invoiced yearly. The lease finished on 12 August 2084. Considering the 58 years left we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including legals.
In 2011 we were phoned by Mrs J Dupont who, having moved into a studio flat in Newton Aycliffe in November 2002. The question was if we could estimate the premium would be for a 90 year lease extension. Comparative properties in Newton Aycliffe with a long lease were worth £205,000. The average ground rent payable was £50 billed annually. The lease ran out on 4 July 2104. Given that there were 78 years unexpired we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.