Newton Heath leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Newton Heath residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Newton Heath you should see if your lease has between 70 and ninety years left. There are compelling reasons why a Newton Heath leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Nationwide Building Society | |
| Skipton Building Society |
The conveyancers that we work with undertake Newton Heath lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Alfie owned a studio apartment in Newton Heath being sold with a lease of a little over 61 years remaining. Alfie informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Alfie to invoke his statutory right. Alfie procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Mrs Sarah Norbert bought a recently refurbished flat in Newton Heath in November 2007. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Identical residencies in Newton Heath with an extended lease were worth £208,600. The mid-range amount of ground rent was £60 billed yearly. The lease elapsed on 27 September 2083. Considering the 57 years remaining we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 plus costs.
Last Summer we were phoned by Ms Lucy Mitchell , who owned a ground floor flat in Newton Heath in February 1995. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparable homes in Newton Heath with an extended lease were valued about £200,000. The average amount of ground rent was £50 billed annually. The lease ran out in 2103. Taking into account 77 years unexpired we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.