The only way is down when it comes to Hebburn lease terms. Hebburn flats that have a lease term shorter than 80 years will drop in value at a rapid rate, and the cost of extending your lease will rise.
Leasehold residencies in Hebburn with in excess of 100 years outstanding 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 service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Hebburn can be a difficult process. We recommend you procure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring Hebburn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted correspondence with the freeholder of her studio flat in Hebburn, Amy initiated the lease extension process as the 80 year threshold was rapidly nearing. The lease extension completed in September 2005. The freeholder’s fees were negotiated to approximately 700 GBP.
Mr Elijah Nguyen took over the lease of a garden apartment in Hebburn in June 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Similar flats in Hebburn with a long lease were worth £223,400. The average ground rent payable was £60 billed every twelve months. The lease ended on 4 March 2084. Considering the 59 years left we calculated the premium to the landlord to extend the lease to be within £27,600 and £31,800 plus fees.
Last Summer we were approach by Mr and Mrs. G Young , who purchased a garden flat in Hebburn in January 1999. The question was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparable properties in Hebburn with 100 year plus lease were in the region of £205,000. The mid-range ground rent payable was £50 billed annually. The lease concluded in 2104. Having 79 years as a residual term we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.