With a long leasehold premises in Newton Aycliffe, you are actually purchasing a right to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Anyone in Newton Aycliffe with a lease approaching 81 years left should seriously think of extending it sooner than later. When a lease has under eighty years remaining, under the current Act the landlord is entitled to calculate and levy a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| 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 Newton Aycliffe can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in this area.
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 Newton Aycliffe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Tommy, came dangerously close to the eighty-year threshold with the lease on his two bedroom apartment in Newton Aycliffe. In buying his property twenty years previously, the length of the lease was of little importance. Thankfully, he noticed he needed to take action soon on a lease extension. Tommy was able to extend his lease just under the wire in March. Tommy and the landlord eventually agreed on the final figure of £5,000 . If he had missed the deadline, the premium would have increased by at least £1,075.
Last Autumn we were approach by Mr K Jones , who bought a one bedroom apartment in Newton Aycliffe in June 2010. The dilemma was if we could approximate the premium would be to extend the lease by a further 90 years. Comparable premises in Newton Aycliffe with 100 year plus lease were worth £216,000. The average amount of ground rent was £60 billed quarterly. The lease terminated on 13 January 2083. Having 58 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of legals.
Mr and Mrs. I Evans took over the lease of a purpose-built flat in Newton Aycliffe in July 1999. The question was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable premises in Newton Aycliffe with 100 year plus lease were valued about £205,000. The average amount of ground rent was £50 billed monthly. The lease came to a finish in 2103. Taking into account 78 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.