The re-sale value of a leasehold property in Longbenton depends on how long the lease has remaining. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be finalised ahead of the 80 year threshold. Statute enables Longbenton qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a supplemental term of 90 years. The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Longbenton with over 100 years unexpired on the lease are sometimes regarded as a ‘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 freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Longbenton can be a difficult process. We recommend you procure professional help from a conveyancer and valuer with experience in this area.
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 in-depth market knowledge procuring Longbenton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Sam was the the leasehold proprietor of a studio flat in Longbenton on the market with a lease of a few days over sixty years remaining. Sam informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Sam to invoke his statutory right. Sam obtained expert advice and secured satisfactory deal without resorting to tribunal and sell the property.
In 2012 we were e-mailed by Ms P Leroy who, having moved into a one bedroom apartment in Longbenton in May 2011. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Similar flats in Longbenton with 100 year plus lease were valued around £265,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease ran out on 22 October 2092. Given that there were 66 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 not including professional charges.
Last Winter we were contacted by Mrs P Watson , who was assigned a lease of a recently refurbished apartment in Longbenton in November 2003. The question was if we could estimate the price could be for a 90 year lease extension. Comparable premises in Longbenton with a long lease were in the region of £198,800. The mid-range ground rent payable was £55 collected every twelve months. The lease finished in 2081. Having 55 years remaining we calculated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 not including expenses.