The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in North Newbald may extend the lease for a further 90 years under Leasehold Reform legislation. Do give careful consideration before delaying your North Newbald lease extension. Shelving that expense today simply increases the price you will eventually be required to pay for a lease extension.
Leasehold premises in North Newbald with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure 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.
Ollie owned a conversion apartment in North Newbald being sold with a lease of fraction over sixty years remaining. Ollie on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ollie to exercise his statutory right. Ollie obtained expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
Last Spring we were called by Dr L Gunderson , who acquired a garden apartment in North Newbald in November 2001. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Similar properties in North Newbald with 100 year plus lease were in the region of £181,600. The mid-range ground rent payable was £55 collected monthly. The lease terminated in 2078. Taking into account 52 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 plus legals.
Mr Mason Thomas completed a one bedroom flat in North Newbald in February 1996. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Similar properties in North Newbald with a long lease were worth £290,000. The mid-range ground rent payable was £45 collected per annum. The lease finished on 15 July 2099. Taking into account 73 years left we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.