With a domestic leasehold property in Newton Aycliffe, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be 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. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Residents in Newton Aycliffe with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. When a lease has under eighty years remaining, under the relevant legislation the freeholder can calculate and demand a greater amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold properties in Newton Aycliffe with more than 100 years left 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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord 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 experience and the close ties they enjoy with Newton Aycliffe valuers.
Last year Cameron, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Newton Aycliffe. Having purchased his property twenty years previously, the length of the lease was of minimal concern. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Cameron extended the lease at the eleventh hour last January. Cameron and the freeholder subsequently agreed on a premium of £5,500 . If the lease had slid lower than 80 years, the price would have become more exhorbitant by at least £850.
In 2013 we were approached by Dr Jason Kelly who, having was assigned a lease of a first floor flat in Newton Aycliffe in January 2010. The question was if we could approximate the premium could be to prolong the lease by a further 90 years. Comparative residencies in Newton Aycliffe with an extended lease were worth £206,200. The mid-range amount of ground rent was £55 billed every twelve months. The lease lapsed in 2081. Having 56 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of costs.
In 2009 we were e-mailed by Dr Gabriel Martinez who, having completed a garden apartment in Newton Aycliffe in February 2007. The question was if we could estimate the premium could be for a ninety year extension to my lease. Identical homes in Newton Aycliffe with an extended lease were valued about £300,000. The mid-range ground rent payable was £50 billed quarterly. The lease ran out in 2101. Considering the 76 years unexpired we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of fees.