Unfortunately that a Monkseaton residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Monkseaton property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term drops below eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Monkseaton will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in Monkseaton with in excess of 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 to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Engaging our service will provide you increased control over the value of your Monkseaton leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
George was the the leasehold owner of a high value flat in Monkseaton being sold with a lease of a little over 72 years left. George on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be due on a lease extension were George to invoke his statutory right. George obtained expert advice and was able to make an informed decision and deal with the matter and sell the flat.
Mr and Mrs. I Young owned a studio flat in Monkseaton in June 2007. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Similar flats in Monkseaton with a long lease were in the region of £285,000. The average ground rent payable was £55 invoiced every twelve months. The lease lapsed in 2104. Having 79 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including professional charges.
In 2012 we were contacted by Mr and Mrs. E Dupont who, having purchased a recently refurbished flat in Monkseaton in March 1997. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Comparative residencies in Monkseaton with a long lease were valued around £193,400. The average ground rent payable was £65 collected annually. The lease lapsed in 2084. Having 59 years left we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus expenses.