When it comes to long leasehold premises in Gateshead, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years remaining. Residents in Gateshead with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. When a lease has below eighty years left, under the current legislation the freeholder can calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Gateshead with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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 service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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. |
| 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 Gateshead can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in this area.
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 a wealth of experience procuring Gateshead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted discussions with the landlord of her studio flat in Gateshead, Rosie commenced the lease extension process just as her lease was coming close to the crucial eighty-year deadline. The lease extension was concluded in November 2014. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. B Jackson completed a one bedroom apartment in Gateshead in May 2012. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Identical homes in Gateshead with a long lease were valued about £206,200. The mid-range amount of ground rent was £60 invoiced yearly. The lease elapsed on 26 April 2082. Considering the 56 years left we estimated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 not including fees.
Last Spring we were approach by Mr and Mrs. T Rose , who completed a ground floor flat in Gateshead in April 2003. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Comparative properties in Gateshead with 100 year plus lease were valued about £300,000. The average ground rent payable was £50 collected per annum. The lease expired in 2102. Having 76 years outstanding we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.