The re-sale value of a leasehold property in Blaydon On Tyne depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be concluded in advance of the eighty year cut off point. Statute entitles Blaydon On Tyne qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Blaydon On Tyne with more than 100 years remaining 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Blaydon On Tyne can be a difficult process. We recommend you get professional help from a conveyancer 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 in-depth market knowledge procuring Blaydon On Tyne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy correspondence with the landlord of her purpose-built apartment in Blaydon On Tyne, Harriet started the lease extension process just as her lease was approaching the crucial 80-year deadline. The transaction was concluded in May 2005. The landlord’s costs were kept to an absolute minimum.
Last Summer we were approach by Mr G Bell , who moved into a studio apartment in Blaydon On Tyne in November 2005. The question was if we could estimate the price could be for a 90 year lease extension. Comparable residencies in Blaydon On Tyne with an extended lease were in the region of £260,000. The average ground rent payable was £50 collected every twelve months. The lease terminated on 2 September 2098. Taking into account 72 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.
Last Winter we were approach by Dr Leon Robinson , who moved into a basement flat in Blaydon On Tyne in May 2007. The question was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable premises in Blaydon On Tyne with a long lease were in the region of £256,600. The average amount of ground rent was £60 billed monthly. The lease expired in 2078. Considering the 52 years remaining we calculated the compensation to the landlord to extend the lease to be between £41,800 and £48,400 not including expenses.