The re-sale value of a leasehold property in Newport Pagnell is impacted by how long the lease has left to run. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is ideal to start the lease extension process when a lease still has 82 years remaining so that all matters can be finalised in advance of the eighty year threshold. Current legislation entitles Newport Pagnell qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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. |
Regardless of whether you are a tenant or a landlord in Newport Pagnell,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 in-depth market knowledge and the close ties they enjoy with Newport Pagnell valuers.
Henry was the the leasehold owner of a studio flat in Newport Pagnell being sold with a lease of a few days over fifty eight years left. Henry on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Henry to exercise his statutory right. Henry procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Last Autumn we were contacted by Mr G Nguyen , who bought a studio apartment in Newport Pagnell in October 2012. The dilemma was if we could estimate the premium could be for a 90 year extension to my lease. Similar homes in Newport Pagnell with a long lease were valued around £285,000. The mid-range ground rent payable was £55 collected monthly. The lease elapsed in 2104. Considering the 79 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including expenses.
Last Christmas we were called by Dr G Garcia , who took over the lease of a studio flat in Newport Pagnell in October 2004. The dilemma was if we could approximate the price would likely be to prolong the lease by an additional years. Comparative flats in Newport Pagnell with 100 year plus lease were in the region of £198,400. The average ground rent payable was £65 invoiced annually. The lease finished on 6 October 2084. Given that there were 59 years outstanding we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.