The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Sturminster Newton may extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do think carefully before delaying your Sturminster Newton lease extension. Postponing the costs now simply increases the price you will eventually have to pay for a lease extension.
Leasehold premises in Sturminster Newton with more than 100 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 premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify 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. |
| 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you enhanced control over the value of your Sturminster Newton leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Summer Dylan, started to get close to the eighty-year mark with the lease on his two bedroom apartment in Sturminster Newton. In buying his home two decades ago, the lease term was of no interest. by good luck, he noticed he would imminently be paying way over the odds for Extending the lease. Dylan arranged for a lease extension just in the nick of time in March. Dylan and the freeholder ultimately settled on sum of £5,000 . If the lease had descended to less than eighty years, the price would have increased by a minimum £950.
In 2014 we were called by Mr and Mrs. H Morgan who, having acquired a one bedroom apartment in Sturminster Newton in September 2009. We are asked if we could estimate the price would be to extend the lease by ninety years. Comparable flats in Sturminster Newton with 100 year plus lease were worth £179,200. The average ground rent payable was £55 invoiced every twelve months. The lease concluded on 18 July 2077. Having 51 years remaining we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including costs.
Mr and Mrs. W Bertrand took over the lease of a one bedroom flat in Sturminster Newton in February 2011. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Identical homes in Sturminster Newton with a long lease were valued about £285,000. The mid-range ground rent payable was £45 billed per annum. The lease expiry date was in 2097. Given that there were 71 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.