Chances are that if you own a flat in Beadnell you actually own a long leasehold interest over your property
Leasehold premises in Beadnell with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Using our service will provide you better control over the value of your Beadnell leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted correspondence with the freeholder of her garden apartment in Beadnell, Jade initiated the lease extension process as the 80 year deadline was rapidly approaching. The transaction was finalised in February 2010. The freeholder’s charges were restricted to approximately 650 GBP.
Mr and Mrs. W Turner acquired a one bedroom flat in Beadnell in March 2004. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Similar flats in Beadnell with 100 year plus lease were valued about £265,000. The average amount of ground rent was £50 invoiced annually. The lease finished in 2099. Considering the 73 years unexpired we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.
Dr Noah Martin bought a ground floor flat in Beadnell in August 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparable properties in Beadnell with 100 year plus lease were valued about £264,000. The average amount of ground rent was £60 billed yearly. The lease expired on 21 October 2079. Taking into account 53 years unexpired we calculated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 exclusive of legals.