Chances are that if you own a flat in Boldon you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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; |
| Coventry Building Society | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Boldon,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Boldon valuers.
Last Winter Reuben, came very near to the 80-year mark with the lease on his studio apartment in Boldon. Having bought his home two decades ago, the unexpired term was of no interest. Thankfully, he became aware that he would soon be paying an inflated amount for Extending the lease. Reuben arranged for a lease extension at the eleventh hour in April. Reuben and the landlord who owned the flat above in the end agreed on a premium of £5,000 . If the lease had slid below eighty years, the figure would have escalated by at least £950.
Mr and Mrs. T Taylor purchased a one bedroom apartment in Boldon in November 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by an additional years. Comparative homes in Boldon with a long lease were worth £237,600. The mid-range ground rent payable was £45 invoiced yearly. The lease lapsed on 11 January 2092. Having 67 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of legals.
Last Christmas we were called by Mr Austin Gray , who completed a purpose-built apartment in Boldon in July 2000. The dilemma was if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Comparative premises in Boldon with an extended lease were valued around £280,000. The mid-range amount of ground rent was £55 collected per annum. The lease ran out in 2103. Given that there were 78 years remaining we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including professional charges.