Newton Ferrers leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Newton Ferrers tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Newton Ferrers you would be well advised to investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Newton Ferrers can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in lease extensions.
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 Ferrers lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Andrew owned a studio flat in Newton Ferrers being sold with a lease of just over sixty years outstanding. Andrew on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Andrew to invoke his statutory right. Andrew obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
In 2010 we were phoned by Dr Kelsey Taylor who, having was assigned a lease of a one bedroom apartment in Newton Ferrers in August 2003. The dilemma was if we could approximate the price would be to extend the lease by a further 90 years. Comparable premises in Newton Ferrers with an extended lease were valued about £200,800. The average amount of ground rent was £65 invoiced yearly. The lease lapsed on 8 March 2085. Considering the 60 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 plus legals.
Dr V Morris took over the lease of a studio flat in Newton Ferrers in February 2012. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Similar properties in Newton Ferrers with 100 year plus lease were worth £255,000. The average amount of ground rent was £50 collected every twelve months. The lease finished on 3 June 2096. Given that there were 71 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.