When it comes to domestic leasehold premises in Newington, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are less than 80 years left. Leasehold owners in Newington with a lease drawing near to 81 years remaining should seriously consider extending it sooner as opposed to later. When a lease has under eighty years remaining, under the current legislation the landlord can calculate and levy a larger amount, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Newington can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Newington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted discussions with the landlord of her basement apartment in Newington, Charlotte initiated the lease extension process just as the lease was approaching the all-important 80-year mark. The transaction completed in January 2006. The landlord’s fees were negotiated to about 650 GBP.
In 2010 we were approached by Dr G Simon who, having purchased a garden apartment in Newington in June 2009. The question was if we could approximate the price would be for a 90 year lease extension. Comparable homes in Newington with a long lease were worth £295,000. The average ground rent payable was £45 billed yearly. The lease finished in 2099. Having 74 years left we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.
An example of a Freehold Enfranchisement decision 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 number of years remaining on the existing lease(s) was 107 years.