There is no doubt about it a leasehold flat or house in Byker and Walker is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond 100 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending without delay. Many flat owners in Byker and Walker will qualify for this right; however a conveyancing solicitor will be able to advise whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to 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. |
| 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. |
| 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 Byker and Walker can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in this area.
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 dealing with Byker and Walker lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Tommy was the the leasehold owner of a high value apartment in Byker and Walker on the market with a lease of a little over 59 years remaining. Tommy on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. No ground rent would be due on a lease extension were Tommy to exercise his statutory right. Tommy obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Last Winter we were contacted by Dr Leon Petit , who purchased a recently refurbished apartment in Byker and Walker in July 2008. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparative premises in Byker and Walker with an extended lease were valued around £200,800. The mid-range ground rent payable was £65 billed quarterly. The lease concluded on 11 March 2086. Given that there were 60 years left we approximated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 plus fees.
In 2009 we were called by Mr F Adams who, having took over the lease of a basement apartment in Byker and Walker in February 2008. The dilemma was if we could estimate the premium would be to prolong the lease by an additional years. Comparative homes in Byker and Walker with a long lease were in the region of £255,000. The average amount of ground rent was £50 collected quarterly. The lease concluded on 28 June 2097. Given that there were 71 years left we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.