Unfortunately that a Newton Ferrers residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Newton Ferrers property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining dips below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Newton Ferrers will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold properties in Newton Ferrers with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you better control over the value of your Newton Ferrers leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
David owned a high value flat in Newton Ferrers being marketed with a lease of just over 59 years unexpired. David informally spoke with his landlord a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were David to invoke his statutory right. David obtained expert advice and secured satisfactory deal informally and sell the flat.
Mr and Mrs. S Cook was assigned a lease of a one bedroom flat in Newton Ferrers in September 2012. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar flats in Newton Ferrers with a long lease were valued about £193,400. The mid-range ground rent payable was £65 billed every twelve months. The lease ended in 2083. Considering the 59 years unexpired we calculated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 plus expenses.
Last year we were contacted by Mrs I Murphy , who took over the lease of a purpose-built apartment in Newton Ferrers in July 2008. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Identical properties in Newton Ferrers with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 billed yearly. The lease concluded in 2094. Taking into account 70 years remaining we approximated the premium to the freeholder for the lease extension to be between £10,500 and £12,000 exclusive of costs.