The re-sale value of a leasehold property in Newton Aycliffe is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should expect problems on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to commence the lease extension process when the lease still has 82 years to run so that all matters can be addressed prior to the 80 year cut off point. Leasehold Reform legislation enables Newton Aycliffe qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Newton Aycliffe with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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 service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure 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 lawyer we work with provide it.
Half a year ago Cameron, came seriously close to the 80-year threshold with the lease on his purpose- built apartment in Newton Aycliffe. Having purchased his property twenty years previously, the unexpired term was of no relevance. Thankfully, he noticed he would soon be paying an escalated premium for a lease extension. Cameron arranged for a lease extension just in the nick of time last September. Cameron and the freeholder in the end agreed on the final figure of £5,500 . If he had missed the deadline, the price would have escalated by at least £1,100.
Last Autumn we were phoned by Dr Hugo Norbert , who bought a one bedroom apartment in Newton Aycliffe in November 2009. The question was if we could estimate the price would be for a ninety year lease extension. Identical homes in Newton Aycliffe with a long lease were worth £267,600. The mid-range amount of ground rent was £65 invoiced quarterly. The lease ran out on 21 April 2093. Considering the 67 years outstanding we approximated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 plus legals.
In 2011 we were approached by Dr Jude Adams who, having owned a first floor apartment in Newton Aycliffe in September 2001. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical homes in Newton Aycliffe with 100 year plus lease were in the region of £206,200. The average amount of ground rent was £60 billed annually. The lease lapsed on 22 February 2082. Having 56 years remaining we estimated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 not including expenses.