There is no doubt about it a leasehold property in Newton Ferrers is a wasting asset as a result of the shortening lease. Where the lease has, in excess of 100 years remaining then this decrease may be of little impact however there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner rather than later. The majority of flat owners in Newton Ferrers will qualify for this right; however a conveyancer will be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Newton Ferrers can be a difficult process. We recommend you secure 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.
Jonathan owned a studio apartment in Newton Ferrers being sold with a lease of a little over fifty eight years unexpired. Jonathan on an informal basis approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jonathan to invoke his statutory right. Jonathan obtained expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.
In 2010 we were phoned by Mr Aaron Nguyen who, having moved into a studio apartment in Newton Ferrers in November 2008. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Similar homes in Newton Ferrers with 100 year plus lease were in the region of £225,400. The average amount of ground rent was £45 collected every twelve months. The lease ran out on 15 July 2089. Taking into account 64 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 not including expenses.
Last Christmas we were called by Mr and Mrs. Y Baker , who purchased a recently refurbished flat in Newton Ferrers in April 1999. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Identical properties in Newton Ferrers with 100 year plus lease were in the region of £270,000. The mid-range amount of ground rent was £55 collected per annum. The lease ended in 2100. Taking into account 75 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.