As the length of the unexpired term of a Longbenton domestic lease diminished so does its value and therefore the value of your property. If the lease has, over one hundred years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease without delay. The majority of flat owners in Longbenton will qualify for this right; that being said a lawyer should be able to advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Longbenton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Longbenton valuers.
Off the back of unsuccessful discussions with the freeholder of her basement apartment in Longbenton, Abigail initiated the lease extension process as the 80 year mark was swiftly nearing. The transaction completed in October 2013. The freeholder’s costs were negotiated to slightly above 700 GBP.
In 2012 we were approached by Mr and Mrs. S Roberts who, having was assigned a lease of a one bedroom apartment in Longbenton in June 2001. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Identical flats in Longbenton with an extended lease were in the region of £210,000. The mid-range amount of ground rent was £50 billed quarterly. The lease terminated in 2105. Given that there were 80 years as a residual term we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.
Last Autumn we were called by Dr O Gunderson , who took over the lease of a studio apartment in Longbenton in August 2011. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Identical homes in Longbenton with an extended lease were valued around £280,000. The mid-range ground rent payable was £45 collected every twelve months. The lease elapsed on 11 November 2094. Given that there were 69 years remaining we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus professional charges.