For those whose Newton Ferrers property is held on a long lease, the message is clear – if you ignore the situation, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.
Leasehold residencies in Newton Ferrers with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Newton Ferrers can be a difficult process. We recommend you procure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 dealing with Newton Ferrers lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jasper owned a conversion apartment in Newton Ferrers being sold with a lease of just over sixty years unexpired. Jasper 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 £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Jasper to invoke his statutory right. Jasper obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
In 2013 we were e-mailed by Mr T James who, having bought a studio apartment in Newton Ferrers in August 1997. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Comparable homes in Newton Ferrers with 100 year plus lease were valued about £173,800. The mid-range ground rent payable was £60 invoiced quarterly. The lease came to a finish in 2081. Considering the 55 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including legals.
Last October we were called by Dr Edward Hernández , who completed a basement apartment in Newton Ferrers in September 2000. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Comparative properties in Newton Ferrers with an extended lease were in the region of £235,200. The mid-range amount of ground rent was £45 collected per annum. The lease lapsed in 2092. Given that there were 66 years remaining we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.