East Boldon 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 becomes more expensive. It is the case that most East Boldon tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in East Boldon you must investigate if your lease has between seventy and 90 years remaining. There are compelling reasons why a East Boldon flat owner with a lease having around eighty years left should take steps to make sure that a lease extension is put in place without delay
Leasehold properties in East Boldon with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| 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 be at least 75 years plus the term of the mortgage 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. |
Lease extensions in East Boldon can be a difficult process. We recommend you obtain 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 procuring 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.
Reuben owned a 2 bedroom apartment in East Boldon being marketed with a lease of fraction over fifty eight years unexpired. Reuben informally contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Reuben to invoke his statutory right. Reuben procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.
In 2013 we were called by Ms O Bailey who, having bought a one bedroom apartment in East Boldon in June 2008. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Comparative premises in East Boldon with an extended lease were worth £250,000. The average amount of ground rent was £50 invoiced annually. The lease lapsed in 2094. Taking into account 68 years outstanding we calculated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 plus fees.
Last Autumn we were called by Ms D Wright , who bought a garden apartment in East Boldon in July 2000. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable premises in East Boldon with an extended lease were valued around £285,000. The average ground rent payable was £55 billed every twelve months. The lease termination date was on 12 May 2105. Taking into account 79 years unexpired we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus costs.