With a residential leasehold property in Byker and Walker, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years left. Leasehold owners in Byker and Walker with a lease approaching 81 years unexpired should seriously think of extending it sooner than later. When a lease has fewer than eighty years left, under the relevant statute the freeholder is entitled to calculate and levy a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Byker and Walker with in excess of 100 years outstanding 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 situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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 Byker and Walker can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 in-depth market knowledge 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.
In the wake of 6 months of unsuccessful correspondence with the landlord of her purpose-built apartment in Byker and Walker, Caitlin initiated the lease extension process as the 80 year threshold was fast advancing. The legal work was concluded in July 2005. The freeholder’s charges were negotiated to about 650 GBP.
In 2009 we were contacted by Mr Ali Richardson who, having took over the lease of a newly refurbished apartment in Byker and Walker in October 2007. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative residencies in Byker and Walker with 100 year plus lease were valued around £260,000. The average amount of ground rent was £50 invoiced monthly. The lease lapsed in 2098. Taking into account 72 years left we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
Mr and Mrs. I Brown owned a purpose-built apartment in Byker and Walker in February 2006. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparative properties in Byker and Walker with an extended lease were valued about £256,600. The average ground rent payable was £60 billed every twelve months. The lease concluded in 2078. Given that there were 52 years unexpired we estimated the compensation to the landlord for the lease extension to be within £39,000 and £45,000 exclusive of costs.