With a residential leasehold premises in Newton Aycliffe, you are actually purchasing a right to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than 80 years remaining. Residents in Newton Aycliffe with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has fewer than eighty years left, under the current Act the freeholder is entitled to calculate and demand a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Newton Aycliffe with more than one hundred years left 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 premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
Lender | Requirement |
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Halifax | Minimum 70 years from the date of the mortgage. |
Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
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. |
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. |
Lease extensions in Newton Aycliffe can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Newton Aycliffe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful discussions with the landlord of her two bedroom flat in Newton Aycliffe, Amy started the lease extension process as the eighty year threshold was fast approaching. The legal work was finalised in January 2011. The freeholder’s costs were restricted to slightly above 450 GBP.
Last Spring we were e-mailed by Dr V Fournier , who acquired a studio apartment in Newton Aycliffe in September 1999. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Newton Aycliffe with a long lease were in the region of £257,800. The average ground rent payable was £65 invoiced per annum. The lease came to a finish on 19 October 2089. Having 65 years outstanding we calculated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 plus expenses.
Mrs Rosie Smith moved into a studio apartment in Newton Aycliffe in February 2003. The dilemma was if we could estimate the premium could be to prolong the lease by 90 years. Identical residencies in Newton Aycliffe with an extended lease were in the region of £191,400. The mid-range amount of ground rent was £55 collected quarterly. The lease concluded in 2078. Having 54 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £34,200 and £39,600 not including legals.