When it comes to long leasehold property in East Boldon, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Residents in East Boldon with a lease approaching 81 years remaining should seriously consider extending it without delay. When a lease has below eighty years remaining, under the relevant Act the freeholder can calculate and levy a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in East Boldon with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in East Boldon can be a difficult process. We recommend you secure professional help from a conveyancer and valuer 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 East Boldon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful discussions with the freeholder of her first floor flat in East Boldon, Sophie commenced the lease extension process as the eighty year deadline was fast approaching. The transaction was finalised in June 2007. The landlord’s costs were kept to an absolute minimum.
In 2012 we were approached by Ms L White who, having purchased a studio apartment in East Boldon in January 2011. We are asked if we could approximate the price would be for a 90 year lease extension. Identical flats in East Boldon with a long lease were valued around £235,200. The mid-range ground rent payable was £45 collected every twelve months. The lease end date was on 12 March 2091. Taking into account 66 years remaining we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including legals.
In 2010 we were phoned by Mr Finley Mercier who, having purchased a garden flat in East Boldon in October 2008. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparable residencies in East Boldon with 100 year plus lease were valued around £280,000. The average amount of ground rent was £55 billed annually. The lease lapsed in 2102. Having 77 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus legals.