There is no doubt about it a leasehold property in North Newbald is a wasting asset as a result of the diminishing lease term. If the lease has, over 100 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending sooner than later. Most flat owners in North Newbald will qualify for this right; that being said a lawyer can confirm 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 North Newbald with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. 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 |
|---|---|
| Accord Mortgages | 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. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
The conveyancing solicitors that we work with undertake 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 conveyancer we work with provide it.
Matthew was the the leasehold proprietor of a high value apartment in North Newbald on the market with a lease of a few days over 59 years outstanding. Matthew informally approached his landlord being a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Matthew to invoke his statutory right. Matthew obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
Mr and Mrs. A Bernard purchased a newly refurbished flat in North Newbald in May 2006. We are asked if we could approximate the premium could be for a ninety year lease extension. Identical residencies in North Newbald with an extended lease were in the region of £295,000. The average ground rent payable was £45 collected yearly. The lease elapsed on 22 May 2099. Having 74 years outstanding we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.
Last Summer we were contacted by Dr Mason Phillips , who acquired a first floor apartment in North Newbald in February 1997. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative flats in North Newbald with an extended lease were worth £248,000. The average amount of ground rent was £65 billed annually. The lease elapsed in 2088. Given that there were 63 years as a residual term we estimated the premium to the landlord to extend the lease to be between £20,900 and £24,200 not including professional charges.