Newton Aycliffe leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Newton Aycliffe enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Newton Aycliffe you would be well advised to see if your lease has between seventy and ninety years remaining. There are good reasons why a Newton Aycliffe leaseholder with a lease having around eighty years remaining should take steps to ensure that a lease extension is effected without delay
Leasehold properties in Newton Aycliffe with over 100 years outstanding on the lease are often referred to as ‘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 upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Using our service will provide you enhanced control over the value of your Newton Aycliffe leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Isaac, came seriously close to the eighty-year threshold with the lease on his ground floor apartment in Newton Aycliffe. Having bought his home 18 years previously, the lease term was of little concern. Thankfully, he became aware that he would soon be paying way over the odds for a lease extension. Isaac was able to extend his lease just ahead of time last September. Isaac and the freeholder via the managing agents ultimately settled on a premium of £5,000 . If he failed to meet the deadline, the sum would have escalated by at least £975.
Dr Lydia Ward moved into a one bedroom apartment in Newton Aycliffe in November 2005. The question was if we could approximate the premium would be to prolong the lease by an additional years. Similar premises in Newton Aycliffe with a long lease were in the region of £257,800. The mid-range ground rent payable was £65 invoiced every twelve months. The lease lapsed in 2091. Having 65 years left we calculated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus costs.
Mr and Mrs. G Sánchez acquired a one bedroom apartment in Newton Aycliffe in March 2006. The dilemma was if we could estimate the price could be to extend the lease by ninety years. Comparable premises in Newton Aycliffe with a long lease were valued around £191,400. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease end date was in 2080. Considering the 54 years outstanding we approximated the premium to the landlord to extend the lease to be within £34,200 and £39,600 not including expenses.