With a domestic leasehold premises in Jesmond, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than eighty years left. Leasehold owners in Jesmond with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When the lease term has fewer than eighty years outstanding, under the current legislation the landlord can calculate and demand a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
It is generally considered that a residential leasehold with more than one hundred years remaining 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 in the future.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Jesmond can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor 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 dealing with Jesmond lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago John, came critically close to the 80-year mark with the lease on his studio flat in Jesmond. Having purchased his flat twenty years ago, the length of the lease was of no importance. Luckily, it dawned on him that he needed to take steps soon on a lease extension. John was able to extend his lease at the eleventh hour in March. John and the landlord in the end settled on sum of £6,000 . If the lease had descended lower than 80 years, the price would have escalated by at least £900.
In 2013 we were called by Dr Logan Bennett who, having moved into a basement apartment in Jesmond in October 2012. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Identical homes in Jesmond with a long lease were in the region of £210,000. The average amount of ground rent was £50 invoiced per annum. The lease lapsed on 27 July 2106. Given that there were 80 years remaining we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
Mr I Díaz purchased a purpose-built apartment in Jesmond in June 1998. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Comparative flats in Jesmond with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £45 collected quarterly. The lease finished on 20 July 2095. Taking into account 69 years outstanding we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus legals.