When it comes to domestic leasehold property in Hebburn, you are actually buying a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Leasehold owners in Hebburn with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. When a lease has under eighty years remaining, under the relevant legislation the landlord is entitled to calculate and charge a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Hebburn with in excess of 100 years left 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 home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers 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 conveyancer we work with provide it.
Cameron was the the leasehold owner of a studio flat in Hebburn being marketed with a lease of a few days over fifty eight years left. Cameron on an informal basis approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Cameron to invoke his statutory right. Cameron procured expert advice and secured satisfactory deal informally and ending up with a market value flat.
Last month we were e-mailed by Mr and Mrs. N Johnson , who acquired a one bedroom apartment in Hebburn in June 2008. The question was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Similar premises in Hebburn with 100 year plus lease were worth £280,000. The average ground rent payable was £45 billed annually. The lease ended on 5 July 2095. Considering the 69 years outstanding we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.
In 2013 we were called by Dr James Vincent who, having took over the lease of a ground floor flat in Hebburn in January 2004. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Similar properties in Hebburn with a long lease were valued about £216,000. The mid-range ground rent payable was £60 billed annually. The lease terminated in 2084. Given that there were 58 years unexpired we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including expenses.