Newton Ferrers leases on domestic properties are gradually losing value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term is under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Newton Ferrers will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain cases you may not qualify. There are also strict deadlines and steps to comply with once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | 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. |
| Yorkshire 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. |
Retaining our service gives you better control over the value of your Newton Ferrers leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Jake, started to get near to the eighty-year mark with the lease on his garden flat in Newton Ferrers. In buying his property 18 years previously, the lease term was of little importance. As luck would have it, it dawned on him that he would soon be paying way over the odds for Extending the lease. Jake was able to extend his lease just under the wire in January. Jake and the freeholder via the management company eventually agreed on the final figure of £6,000 . If the lease had slipped below eighty years, the figure would have escalated by a minimum £875.
Dr A Cooper moved into a one bedroom apartment in Newton Ferrers in November 2007. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable properties in Newton Ferrers with an extended lease were worth £264,000. The mid-range ground rent payable was £60 invoiced monthly. The lease terminated on 19 March 2078. Considering the 53 years remaining we estimated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 plus costs.
In 2010 we were contacted by Mr and Mrs. E Harris who, having took over the lease of a one bedroom apartment in Newton Ferrers in July 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Similar flats in Newton Ferrers with an extended lease were in the region of £225,400. The mid-range ground rent payable was £45 collected per annum. The lease lapsed on 1 July 2089. Taking into account 64 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 plus expenses.