On the balance of probabilities if you own a flat in Newton Ferrers you actually own a long leasehold interest over your property
Leasehold properties in Newton Ferrers with more than 100 years left 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 situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 secure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 in-depth market knowledge 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.
Subsequent to lengthy correspondence with the landlord of her garden apartment in Newton Ferrers, Danielle started the lease extension process as the eighty year deadline was swiftly nearing. The lease extension was finalised in January 2014. The landlord’s charges were negotiated to under 550 GBP.
In 2014 we were called by Dr E White who, having owned a recently refurbished flat in Newton Ferrers in July 2012. 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 a long lease were in the region of £250,000. The average amount of ground rent was £50 billed annually. The lease terminated in 2094. Considering the 69 years unexpired we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.
Dr Callum Adams acquired a purpose-built apartment in Newton Ferrers in March 2011. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparable residencies in Newton Ferrers with 100 year plus lease were valued around £290,000. The mid-range ground rent payable was £60 billed every twelve months. The lease elapsed on 8 February 2105. Having 80 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including costs.