For those whose Newton Longville flat is held on a long lease, the message is clear – if you ignore the situation, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | 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. |
The lawyers that we work with undertake Newton Longville 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.
Last October Zachary, came very near to the eighty-year mark with the lease on his first floor flat in Newton Longville. In buying his property 18 years ago, the unexpired term was of minimal bearing. by good luck, he became aware that he needed to take steps soon on a lease extension. Zachary extended the lease just in the nick of time last March. Zachary and the freeholder ultimately agreed on the final figure of £5,000 . If the lease had fallen lower than 80 years, the sum would have escalated by at least £1,000.
In 2012 we were phoned by Dr Stanley Martin who, having purchased a basement apartment in Newton Longville in October 1999. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Similar properties in Newton Longville with an extended lease were in the region of £233,200. The mid-range ground rent payable was £60 billed every twelve months. The lease termination date was in 2086. Given that there were 61 years remaining we estimated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 plus fees.
Last Winter we were phoned by Ms Victoria Murphy , who bought a purpose-built flat in Newton Longville in April 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparable premises in Newton Longville with a long lease were in the region of £166,800. The average amount of ground rent was £50 billed yearly. The lease expired on 4 October 2075. Taking into account 50 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of costs.