Gateshead leases on domestic properties are gradually losing value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Gateshead will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In some situations you may not qualify. There are also strict deadlines and steps to follow once the process is initiated so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Gateshead with in excess of 100 years remaining 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Leeds Building Society | |
| National Westminster Bank | |
| TSB | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with handle Gateshead lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Jude was the the leasehold proprietor of a 2 bedroom flat in Gateshead on the market with a lease of a few days over 59 years remaining. Jude on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Jude to exercise his statutory right. Jude procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.
Dr Tyler Rogers bought a ground floor apartment in Gateshead in March 2003. The dilemma was if we could approximate the premium would be to prolong the lease by 90 years. Identical flats in Gateshead with 100 year plus lease were in the region of £196,400. The average ground rent payable was £55 billed every twelve months. The lease ran out in 2080. Taking into account 54 years left we estimated the premium to the landlord to extend the lease to be within £35,200 and £40,600 not including legals.
In 2012 we were contacted by Mr and Mrs. E Bell who, having moved into a first floor flat in Gateshead in October 2011. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Similar premises in Gateshead with 100 year plus lease were valued around £295,000. The mid-range amount of ground rent was £45 collected annually. The lease finished on 10 February 2100. Having 74 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.