On the balance of probabilities where you own a flat in Cullercoats you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
The conveyancing solicitors that we work with handle Cullercoats lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Subsequent to protracted correspondence with the landlord of her first floor apartment in Cullercoats, Harriet initiated the lease extension process as the 80 year deadline was quickly advancing. The legal work completed in May 2005. The freeholder’s fees were restricted to under 500 GBP.
In 2011 we were called by Dr L Peterson who, having completed a garden apartment in Cullercoats in May 1996. The question was if we could estimate the premium would likely be for a 90 year lease extension. Identical properties in Cullercoats with a long lease were worth £205,000. The mid-range ground rent payable was £50 billed yearly. The lease came to a finish in 2104. Taking into account 79 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including fees.
Mr and Mrs. E Ali took over the lease of a purpose-built apartment in Cullercoats in May 2011. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical residencies in Cullercoats with an extended lease were worth £275,000. The average amount of ground rent was £65 collected quarterly. The lease ended on 19 January 2093. Having 68 years remaining we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of fees.