There is no doubt about it a leasehold flat or house in Blaydon On Tyne is a wasting asset as a result of the shortening lease. If the lease has, beyond one hundred years remaining then this decrease may be fractional however there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner as opposed to later. The majority of flat owners in Blaydon On Tyne will qualify for this right; however a conveyancing solicitor should be able to advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| 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. |
| 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. |
Engaging our service will provide you increased control over the value of your Blaydon On Tyne leasehold, as your property will be more valuable and saleable in respect of 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.
Connor was the the leasehold owner of a high value apartment in Blaydon On Tyne being marketed with a lease of fraction over sixty years outstanding. Connor informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be due on a lease extension were Connor to invoke his statutory right. Connor obtained expert advice and secured an acceptable resolution informally and sell the flat.
In 2013 we were contacted by Mrs Morgan Brown who, having acquired a purpose-built apartment in Blaydon On Tyne in June 1997. We are asked if we could estimate the price would be to prolong the lease by an additional years. Comparative homes in Blaydon On Tyne with a long lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced per annum. The lease ran out in 2103. Given that there were 77 years unexpired we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including legals.
Last Autumn we were called by Mrs N Green , who acquired a purpose-built apartment in Blaydon On Tyne in June 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Blaydon On Tyne with an extended lease were worth £183,600. The mid-range ground rent payable was £65 invoiced yearly. The lease ran out in 2083. Taking into account 57 years remaining we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus costs.