The market value of Boldon leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the remaining term is less than eighty years
Leasehold properties in Boldon with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Boldon can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor 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 a wealth of experience procuring Boldon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Henry, came critically close to the 80-year mark with the lease on his studio flat in Boldon. Having purchased his flat two decades ago, the length of the lease was of little interest. Fortunately, he noticed he would imminently be paying an inflated amount for Extending the lease. Henry was able to extend his lease at the eleventh hour last August. Henry and the landlord who owned the flat above in the end settled on the final figure of £5,500 . If the lease had dropped to less than eighty years, the figure would have increased by a minimum £950.
Mr and Mrs. G Sánchez completed a basement apartment in Boldon in August 1999. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Identical premises in Boldon with an extended lease were valued about £168,800. The mid-range ground rent payable was £60 invoiced every twelve months. The lease ran out in 2080. Taking into account 55 years left we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including legals.
Ms Lauren Davis acquired a newly refurbished flat in Boldon in August 2002. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparable properties in Boldon with a long lease were worth £235,200. The mid-range ground rent payable was £45 invoiced monthly. The lease came to a finish in 2091. Considering the 66 years remaining we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including costs.