Newbury leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Newbury enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Newbury you should investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Newbury leaseholder with a lease having around 80 years left should take steps to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you increased control over the value of your Newbury leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish 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.
In the wake of eight months of protracted correspondence with the freeholder of her ground floor apartment in Newbury, Lauren initiated the lease extension process as the 80 year threshold was rapidly approaching. The legal work completed in July 2013. The freeholder’s costs were restricted to slightly above 550 pounds.
Last Winter we were phoned by Mr and Mrs. O Peterson , who took over the lease of a newly refurbished apartment in Newbury in November 1999. The question was if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Comparative residencies in Newbury with an extended lease were worth £240,600. The mid-range amount of ground rent was £60 invoiced quarterly. The lease ran out on 27 September 2087. Taking into account 62 years remaining we estimated the premium to the landlord for the lease extension to be within £21,900 and £25,200 not including professional charges.
Last Spring we were approach by Mr and Mrs. S Lewis , who was assigned a lease of a studio flat in Newbury in April 2001. The question was if we could estimate the price would be to prolong the lease by 90 years. Comparative homes in Newbury with 100 year plus lease were worth £174,200. The average ground rent payable was £55 invoiced yearly. The lease lapsed on 21 March 2076. Given that there were 51 years remaining we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of costs.