Heaton and Jesmond leases on residential deteriorating in value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Heaton and Jesmond will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Heaton and Jesmond 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 lawyer we work with provide it.
In the wake of 6 months of protracted correspondence with the freeholder of her leasehold apartment in Heaton and Jesmond, Alexandra initiated the lease extension process as the eighty year deadline was swiftly advancing. The lease extension was finalised in August 2006. The freeholder’s costs were negotiated to less than 650 GBP.
Last Autumn we were e-mailed by Ms I Martinez , who moved into a purpose-built apartment in Heaton and Jesmond in September 2007. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable residencies in Heaton and Jesmond with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £45 collected annually. The lease finished in 2100. Given that there were 74 years left we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including legals.
Mr and Mrs. K Jones was assigned a lease of a garden flat in Heaton and Jesmond in January 2006. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative properties in Heaton and Jesmond with an extended lease were worth £243,000. The mid-range ground rent payable was £65 collected every twelve months. The lease termination date was on 24 June 2089. Taking into account 63 years left we approximated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 not including fees.