Byker and Walker leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Byker and Walker tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Byker and Walker you would be well advised to investigate if your lease has between seventy and 90 years remaining. There are good reasons why a Byker and Walker leaseholder with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay
Leasehold residencies in Byker and Walker with in excess of one hundred 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 upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Byker and Walker,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Byker and Walker valuers.
Felix was the the leasehold proprietor of a studio apartment in Byker and Walker being marketed with a lease of fraction over 61 years outstanding. Felix informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Felix to invoke his statutory right. Felix obtained expert advice and secured an acceptable deal without going to tribunal and sell the property.
Last year we were e-mailed by Mrs Melissa Wright , who completed a one bedroom apartment in Byker and Walker in October 2003. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparable premises in Byker and Walker with a long lease were worth £210,600. The mid-range ground rent payable was £45 invoiced yearly. The lease expiry date was on 18 March 2087. Taking into account 62 years left we estimated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of legals.
Last September we were contacted by Dr Elijah Patel , who was assigned a lease of a purpose-built apartment in Byker and Walker in August 2003. We are asked if we could approximate the price could be to extend the lease by an additional years. Similar flats in Byker and Walker with an extended lease were worth £265,000. The mid-range ground rent payable was £50 invoiced per annum. The lease end date was in 2098. Taking into account 73 years remaining we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.