The market value of a leasehold property in Newton Ferrers is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. Ideally one should start the lease extension process when a lease still has 82 years to run so that all matters can be addressed ahead of the 80 year mark. Leasehold Reform legislation entitles Newton Ferrers qualifying lessees to an additional term of ninety years in addition to the unexpired term, at a nominal rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Newton Ferrers with over one hundred years remaining 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Newton Ferrers,the lease extension lawyers 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 Ferrers valuers.
Nathaniel owned a high value flat in Newton Ferrers being marketed with a lease of a few days over sixty years outstanding. Nathaniel on an informal basis spoke with his freeholder being a well known local-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 an increased rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Nathaniel to invoke his statutory right. Nathaniel procured expert advice and secured an acceptable deal informally and sell the property.
Last Summer we were e-mailed by Mr and Mrs. D Murphy , who moved into a studio flat in Newton Ferrers in September 1998. The question was if we could approximate the price could be to prolong the lease by ninety years. Similar residencies in Newton Ferrers with an extended lease were valued around £250,000. The mid-range ground rent payable was £50 billed annually. The lease lapsed in 2092. Given that there were 68 years unexpired we calculated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 exclusive of fees.
Last May we were approach by Dr Oscar Reed , who moved into a garden apartment in Newton Ferrers in January 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Comparable residencies in Newton Ferrers with a long lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease elapsed on 28 August 2103. Considering the 79 years unexpired we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus fees.