Newcastle upon Tyne leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Newcastle upon Tyne residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Newcastle upon Tyne you would be well advised to investigate if your lease has between seventy and 90 years remaining. There are good reasons why a Newcastle upon Tyne flat owner with a lease having around eighty years unexpired should take action to ensure that a lease extension is effected without delay
Leasehold residencies in Newcastle upon Tyne with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland |
The lawyers that we work with undertake Newcastle upon Tyne lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Following lengthy discussions with the landlord of her studio apartment in Newcastle upon Tyne, Aimee initiated the lease extension process just as her lease was nearing the crucial eighty-year threshold. The legal work was finalised in July 2007. The landlord’s costs were kept to an absolute minimum.
Ms D Thompson was assigned a lease of a one bedroom flat in Newcastle upon Tyne in January 2012. The question was if we could approximate the premium could be for a ninety year lease extension. Identical properties in Newcastle upon Tyne with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 collected monthly. The lease came to a finish in 2106. Having 80 years remaining we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.
Last Spring we were phoned by Mr V Roberts , who took over the lease of a garden apartment in Newcastle upon Tyne in May 2004. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Newcastle upon Tyne with an extended lease were worth £200,800. The mid-range amount of ground rent was £65 billed quarterly. The lease expired in 2086. Given that there were 60 years remaining we calculated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 not including costs.