There is no doubt about it a leasehold property in Gateshead is a wasting asset as a result of the diminishing lease term. Where the lease has, over one hundred years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner rather than later. The majority of flat owners in Gateshead will meet the qualifying criteria; however a conveyancer will be able to confirm if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Gateshead can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor 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 in-depth market knowledge dealing with Gateshead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Arthur owned a studio apartment in Gateshead on the market with a lease of a few days over fifty eight years unexpired. Arthur informally approached his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Arthur to exercise his statutory right. Arthur procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last year we were phoned by Mrs Lydia Smith , who moved into a newly refurbished apartment in Gateshead in May 2006. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparative flats in Gateshead with 100 year plus lease were in the region of £265,200. The average amount of ground rent was £65 collected per annum. The lease ran out in 2092. Taking into account 66 years as a residual term we approximated the premium to the landlord for the lease extension to be between £15,200 and £17,600 plus costs.
Mr and Mrs. W Campbell purchased a one bedroom flat in Gateshead in July 2009. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Comparable properties in Gateshead with a long lease were in the region of £198,800. The average ground rent payable was £55 billed yearly. The lease ran out in 2081. Taking into account 55 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 not including professional charges.