Chances are that if you own a flat in Newton Heath you actually own a long leasehold interest over your property
Leasehold premises in Newton Heath with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle 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 conveyancer we work with provide it.
During the course of the last few months Owen, came very close to the eighty-year mark with the lease on his purpose- built apartment in Newton Heath. In buying his property 18 years ago, the lease term was of minimal importance. Luckily, he noticed he would soon be paying an escalated premium for Extending the lease. Owen extended the lease just under the wire in May. Owen and the freeholder via the managing agents eventually agreed on the final figure of £6,000 . If the lease had slipped below eighty years, the price would have escalated by at least £950.
In 2011 we were e-mailed by Ms J François who, having took over the lease of a newly refurbished flat in Newton Heath in August 2004. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparative flats in Newton Heath with an extended lease were in the region of £280,000. The average ground rent payable was £45 billed annually. The lease finished on 11 September 2095. Given that there were 69 years left we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including professional charges.
In 2010 we were called by Dr U Petit who, having completed a basement flat in Newton Heath in October 2011. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparative flats in Newton Heath with a long lease were in the region of £216,000. The average ground rent payable was £60 billed monthly. The lease concluded in 2084. Having 58 years left we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including costs.