Newton Ferrers Lease Extension - Free Consultation

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Why you should start your Newton Ferrers lease extension


Main reasons to start your Newton Ferrers lease extension today:

Increase your lease and increase your Newton Ferrers property value

There is no doubt about it a leasehold property in Newton Ferrers is a wasting asset as a result of the shortening lease. If the lease has, over 99 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease without delay. Most flat owners in Newton Ferrers will qualify for this right; that being said a conveyancing solicitor can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

Newton Ferrers property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.

Lenders will not finance a property on a short lease

Most mortgage lenders have tightened lending criteria in recent years and borrowers are encountering difficulties in arranging funding or re-mortgage against property with shorter lease terms, particularly below 75 years as they are deemed to be inadequate for lending purposes.

Lender Requirement
Birmingham Midshires Minimum 70 years from the date of the mortgage.
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.
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.
Royal Bank of Scotland Mortgage term plus 30 years.

Why use us for your lease extension in Newton Ferrers?

Using our service gives you increased control over the value of your Newton Ferrers leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Newton Ferrers Lease Extension Example Cases:

Eliot, Newton Ferrers, Devon,

Eliot was the the leasehold owner of a 2 bedroom flat in Newton Ferrers on the market with a lease of a little over 72 years left. Eliot informally contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Eliot to invoke his statutory right. Eliot obtained expert advice and was able to make a more informed decision and deal with the matter and sell the property.

Newton Ferrers case:

Last month we were e-mailed by Mrs S Walker , who completed a one bedroom flat in Newton Ferrers in May 2005. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparable flats in Newton Ferrers with an extended lease were worth £264,000. The average amount of ground rent was £60 invoiced yearly. The lease ended on 18 June 2077. Having 53 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 not including costs.

Newton Ferrers case:

In 2013 we were phoned by Dr Aarav Davis who, having purchased a garden apartment in Newton Ferrers in March 2011. We are asked if we could approximate the price could be for a 90 year lease extension. Identical properties in Newton Ferrers with a long lease were worth £225,400. The mid-range amount of ground rent was £45 collected quarterly. The lease ended in 2088. Taking into account 64 years left we approximated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of costs.