East Boldon leases on residential properties are gradually losing value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the current lease dips below 80 years - otherwise a higher premium will be due. Flat owners in East Boldon will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and steps to comply with once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in East Boldon with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Using our service gives you enhanced control over the value of your East Boldon leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted correspondence with the landlord of her garden flat in East Boldon, Bethany commenced the lease extension process just as the lease was coming close to the crucial eighty-year threshold. The transaction completed in March 2006. The freeholder’s costs were kept to an absolute minimum.
Dr Imogen Green acquired a ground floor flat in East Boldon in April 2011. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar residencies in East Boldon with an extended lease were in the region of £280,000. The mid-range ground rent payable was £55 billed annually. The lease concluded on 13 April 2104. Given that there were 78 years remaining we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of fees.
In 2013 we were called by Mr and Mrs. L Khan who, having purchased a ground floor apartment in East Boldon in August 2003. We are asked if we could estimate the price could be to prolong the lease by ninety years. Comparative flats in East Boldon with an extended lease were in the region of £191,000. The average amount of ground rent was £65 invoiced annually. The lease lapsed in 2084. Taking into account 58 years outstanding we approximated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 plus fees.