Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Newton Ferrers. Inevitably, the term of lease remaining shortens over time. This may pass by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Newton Ferrers have the right to extend the lease for an additional ninety years under legislation. Do give careful attention before delaying your Newton Ferrers lease extension. Holding off that expense now only increases the price you will ultimately have to pay for a lease extension
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced 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 want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Max, started to get near to the 80-year mark with the lease on his one bedroom apartment in Newton Ferrers. In buying his home 18 years previously, the lease term was of minimal importance. by good luck, he realised he would soon be paying an escalated premium for Extending the lease. Max arranged for a lease extension just ahead of time in January. Max and the landlord who owned the flat above in the end agreed on sum of £6,000 . If the lease had gone below 80 years, the price would have increased by at least £950.
In 2013 we were approached by Mr and Mrs. I Walker who, having purchased a first floor flat in Newton Ferrers in May 2010. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable residencies in Newton Ferrers with an extended lease were worth £270,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease lapsed on 12 June 2101. Taking into account 75 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.
In 2011 we were phoned by Dr Catherine Hernández who, having acquired a purpose-built apartment in Newton Ferrers in February 2009. The question was if we could approximate the premium could be for a ninety year extension to my lease. Comparative homes in Newton Ferrers with an extended lease were in the region of £173,800. The mid-range amount of ground rent was £60 collected quarterly. The lease concluded on 28 March 2081. Having 55 years unexpired we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 plus professional charges.