Gateshead residential property owned on a long lease is a wasting asset as the leaseholder only owns the property for a period of years.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Engaging our service gives you better control over the value of your Gateshead leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Elijah, started to get near to the eighty-year threshold with the lease on his garden apartment in Gateshead. Having purchased his flat twenty years previously, the lease term was of minimal relevance. by good luck, he recognised he would imminently be paying way over the odds for a lease extension. Elijah extended the lease at the eleventh hour in July. Elijah and the freeholder via the managing agents in the end agreed on a premium of £6,000 . If he not met the deadline, the amount would have gone up by a minimum £925.
Mr and Mrs. A Davis took over the lease of a purpose-built apartment in Gateshead in June 2008. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar residencies in Gateshead with 100 year plus lease were worth £205,000. The average ground rent payable was £50 invoiced monthly. The lease lapsed on 15 October 2103. Taking into account 78 years left we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.
In 2010 we were phoned by Mr and Mrs. L Richardson who, having owned a garden flat in Gateshead in April 2004. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar premises in Gateshead with 100 year plus lease were valued about £267,600. The average amount of ground rent was £65 billed every twelve months. The lease concluded on 20 January 2092. Considering the 67 years remaining we calculated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of fees.