The market value of a leasehold property in Monkseaton is impacted by how many years the lease has remaining. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be concluded ahead of the eighty year cut off point. Statute enables Monkseaton qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Monkseaton with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance 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; |
| Chelsea 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Monkseaton,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Monkseaton valuers.
After unsuccessful negotiations with the freeholder of her ground floor flat in Monkseaton, Kayleigh initiated the lease extension process just as her lease was approaching the all-important eighty-year threshold. The legal work was concluded in November 2014. The freeholder’s fees were restricted to below six hundred pounds.
Mr Edward Morgan acquired a purpose-built apartment in Monkseaton in August 2003. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparative properties in Monkseaton with 100 year plus lease were valued around £260,000. The average ground rent payable was £50 invoiced per annum. The lease ended on 7 July 2098. Taking into account 72 years unexpired we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
In 2012 we were called by Dr H Davies who, having bought a ground floor flat in Monkseaton in February 2008. The question was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Similar properties in Monkseaton with an extended lease were in the region of £261,600. The average ground rent payable was £60 collected annually. The lease lapsed in 2078. Considering the 52 years remaining we estimated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 not including expenses.