With a long leasehold premises in Newton Aycliffe, you are actually buying an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly once there are fewer than eighty years remaining. Leasehold owners in Newton Aycliffe with a lease approaching 81 years unexpired should seriously think of extending it sooner than later. When a lease has fewer than eighty years outstanding, under the current legislation the freeholder is entitled to calculate and charge a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Newton Aycliffe with more than 100 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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 solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Newton Aycliffe valuers.
Following unsuccessful discussions with the freeholder of her garden flat in Newton Aycliffe, Chantelle commenced the lease extension process as the eighty year mark was swiftly approaching. The legal work completed in July 2008. The freeholder’s charges were kept to an absolute minimum.
Last Spring we were contacted by Mr and Mrs. B François , who acquired a one bedroom flat in Newton Aycliffe in January 2006. The question was if we could approximate the price could be for a 90 year lease extension. Comparative premises in Newton Aycliffe with a long lease were in the region of £300,000. The mid-range amount of ground rent was £50 billed monthly. The lease expiry date was on 10 June 2101. Taking into account 75 years as a residual term we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.
Last Spring we were phoned by Mr and Mrs. E Parker , who took over the lease of a first floor apartment in Newton Aycliffe in June 2012. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable homes in Newton Aycliffe with an extended lease were worth £250,400. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease elapsed on 3 March 2090. Considering the 64 years remaining we approximated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 not including expenses.