The value of East Boldon leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the remaining term is below than 80 years
Leasehold properties in East Boldon with more than one hundred 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in East Boldon,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with East Boldon valuers.
Two years ago Ryan, started to get close to the 80-year threshold with the lease on his studio flat in East Boldon. In buying his flat twenty years previously, the lease term was of minimal relevance. by good luck, he recognised he needed to take action soon on Extending the lease. Ryan was able to extend his lease just under the wire in January. Ryan and the freeholder via the management company in the end settled on the final figure of £6,000 . If he had missed the deadline, the price would have increased by a minimum £1,100.
Last Summer we were contacted by Ms O Michel , who purchased a first floor flat in East Boldon in September 2003. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative premises in East Boldon with 100 year plus lease were valued about £176,200. The mid-range amount of ground rent was £65 invoiced monthly. The lease came to a finish on 10 October 2082. Taking into account 56 years left we estimated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 plus costs.
Last year we were phoned by Mrs Louise André , who purchased a first floor apartment in East Boldon in June 2002. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparable premises in East Boldon with 100 year plus lease were valued about £242,600. The average amount of ground rent was £45 collected per annum. The lease terminated in 2093. Given that there were 67 years remaining we approximated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 not including fees.