As the length of the unexpired term of a North Newbald domestic lease diminished so does its value and therefore the value of your property. If the lease has, over one hundred years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Most flat owners in North Newbald will meet the qualifying criteria; however a lawyer can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in North Newbald with more than 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 premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle North Newbald 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 conveyancing solicitor we work with provide it.
Last October Caleb, came critically near to the 80-year threshold with the lease on his ground floor flat in North Newbald. Having purchased his home two decades ago, the lease term was of no interest. by good luck, he realised he would imminently be paying an inflated amount for Extending the lease. Caleb extended the lease just in the nick of time in April. Caleb and the landlord subsequently agreed on sum of £5,000 . If the lease had gone below 80 years, the figure would have increased by a minimum £1,000.
Last Winter we were phoned by Mr and Mrs. R Harris , who acquired a basement apartment in North Newbald in November 2012. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparable residencies in North Newbald with a long lease were in the region of £198,800. The mid-range ground rent payable was £55 collected per annum. The lease finished in 2081. Taking into account 55 years left we calculated the premium to the landlord for the lease extension to be between £33,300 and £38,400 not including professional charges.
Last Summer we were contacted by Mr C Ramírez , who bought a purpose-built apartment in North Newbald in April 1995. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Identical homes in North Newbald with a long lease were in the region of £300,000. The average ground rent payable was £50 invoiced every twelve months. The lease elapsed in 2101. Given that there were 75 years remaining we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of costs.