The nearer a residential lease in Newton Heath nears to zero years unexpired, the more it reduces the value of the property. If the lease has, in excess of one hundred years remaining then this decrease may be fractional that being said there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending sooner than later. The majority of flat owners in Newton Heath will qualify for this right; that being said a conveyancing solicitor can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Newton Heath with over one hundred years unexpired 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Newton Heath,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Newton Heath valuers.
Tommy was the the leasehold proprietor of a studio apartment in Newton Heath being marketed with a lease of just over 72 years unexpired. Tommy on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be due on a lease extension were Tommy to invoke his statutory right. Tommy obtained expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
In 2011 we were contacted by Mr and Mrs. S Rivera who, having moved into a garden flat in Newton Heath in May 1996. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Identical homes in Newton Heath with a long lease were valued about £285,000. The average ground rent payable was £45 invoiced per annum. The lease came to a finish in 2097. Given that there were 71 years unexpired we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including legals.
Dr E Miller completed a studio apartment in Newton Heath in November 2004. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable homes in Newton Heath with 100 year plus lease were worth £225,800. The mid-range amount of ground rent was £60 collected quarterly. The lease elapsed in 2086. Having 60 years remaining we calculated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 plus costs.