With a domestic leasehold premises in Hebburn, you are actually purchasing a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than 80 years remaining. Anyone in Hebburn with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. When a lease has under 80 years outstanding, under the relevant Act the freeholder can calculate and levy a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Hebburn 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.
Daniel was the the leasehold proprietor of a studio apartment in Hebburn being sold with a lease of just over 61 years outstanding. Daniel on an informal basis contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Daniel to invoke his statutory right. Daniel obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
Mr and Mrs. R Adams completed a first floor flat in Hebburn in April 1999. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparative properties in Hebburn with a long lease were in the region of £181,600. The mid-range amount of ground rent was £55 collected per annum. The lease expired in 2077. Having 52 years left we approximated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 plus legals.
In 2010 we were e-mailed by Ms D Lefebvre who, having was assigned a lease of a one bedroom apartment in Hebburn in October 1995. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Identical premises in Hebburn with an extended lease were in the region of £290,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease end date was on 26 January 2097. Having 72 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 plus expenses.