Newton Aycliffe leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Newton Aycliffe residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Newton Aycliffe you must see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Newton Aycliffe with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Skipton Building Society | |
| The Mortgage Works | |
| Virgin |
The conveyancers that we work with undertake 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.
Two years ago Luke, started to get close to the eighty-year mark with the lease on his garden flat in Newton Aycliffe. In buying his home two decades ago, the unexpired term was of minimal bearing. Thankfully, he recognised he needed to take action soon on Extending the lease. Luke arranged for a lease extension just under the wire in March. Luke and the landlord ultimately settled on the final figure of £5,000 . If he had missed the deadline, the figure would have gone up by at least £1,150.
Mr and Mrs. W Fournier purchased a one bedroom apartment in Newton Aycliffe in June 1998. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparable flats in Newton Aycliffe with 100 year plus lease were valued around £223,400. The average amount of ground rent was £60 billed annually. The lease lapsed in 2085. Given that there were 59 years remaining we estimated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 plus legals.
In 2009 we were approached by Mr and Mrs. G Evans who, having completed a ground floor flat in Newton Aycliffe in January 2009. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Identical flats in Newton Aycliffe with a long lease were worth £205,000. The mid-range amount of ground rent was £50 collected monthly. The lease came to a finish in 2105. Having 79 years remaining we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.