As the the remaining lease term of a Newington residential lease diminished so does its value and therefore the value of your property. Where the lease has, beyond 99 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending without delay. Many flat owners in Newington will qualify for this right; that being said a lawyer will be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Newington,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Newington valuers.
In 2014 Finley, came precariously near to the 80-year mark with the lease on his leasehold apartment in Newington. Having bought his flat two decades ago, the lease term was of little bearing. Luckily, he noticed he needed to take steps soon on Extending the lease. Finley extended the lease just ahead of time in August. Finley and the freeholder via the management company eventually settled on an amount of £6,000 . If the lease had descended below eighty years, the figure would have become more costly by at least £975.
In 2012 we were called by Mr H James who, having owned a ground floor flat in Newington in August 2000. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparable residencies in Newington with an extended lease were valued about £248,000. The average ground rent payable was £65 billed per annum. The lease elapsed on 28 July 2087. Considering the 63 years left we estimated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 not including expenses.
An example of a Freehold Enfranchisement case for a Newington premises is 1-41 Royal Tower Lodge 40 Cartwright Street in April 2013. the tribunal adding the agreed value of capitalised ground rents and the reversion the price to be paid for the freehold was £1,187,000 This case related to 41 flats. The unexpired lease term was 107 years.