Newton Ferrers leases on residential deteriorating in value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Newton Ferrers will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain cases you may not qualify. There are prescribed timetables and procedures to comply with once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Newton Ferrers with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Newton Ferrers,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Newton Ferrers valuers.
Half a year ago Eli, came seriously close to the eighty-year threshold with the lease on his leasehold apartment in Newton Ferrers. In buying his property two decades ago, the length of the lease was of no interest. As luck would have it, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Eli was able to extend his lease just under the wire in August. Eli and the freeholder eventually agreed on sum of £5,500 . If the lease had descended to less than 80 years, the price would have increased by at least £1,150.
In 2012 we were phoned by Mr and Mrs. E Thompson who, having owned a ground floor flat in Newton Ferrers in May 2007. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparative premises in Newton Ferrers with a long lease were in the region of £235,200. The average ground rent payable was £45 collected annually. The lease elapsed on 21 June 2092. Given that there were 66 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.
In 2013 we were approached by Dr T Dupont who, having was assigned a lease of a ground floor flat in Newton Ferrers in June 2009. The question was if we could approximate the price would likely be to prolong the lease by a further 90 years. Similar premises in Newton Ferrers with 100 year plus lease were in the region of £275,000. The average ground rent payable was £55 billed every twelve months. The lease lapsed in 2103. Given that there were 77 years outstanding we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus professional charges.