The market value of a leasehold property in Newcastle upon Tyne depends on how many years the lease has remaining. If it is near to or less than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years to run so that formalities can be concluded in advance of the 80 year threshold. Statute enables Newcastle upon Tyne 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 purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Newcastle upon Tyne with in excess of one hundred years unexpired on the lease are often 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 upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Skipton Building Society |
Lease extensions in Newcastle upon Tyne can be a difficult process. We recommend you secure 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 Newcastle upon Tyne 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 conversion flat in Newcastle upon Tyne on the market with a lease of just over 72 years remaining. Sam informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Sam to invoke his statutory right. Sam obtained expert advice and secured an acceptable deal without going to tribunal and sell the flat.
In 2012 we were e-mailed by Mrs Ellie Leroy who, having completed a purpose-built flat in Newcastle upon Tyne in September 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Similar properties in Newcastle upon Tyne with 100 year plus lease were valued about £208,200. The mid-range ground rent payable was £65 invoiced quarterly. The lease ran out on 20 May 2087. Given that there were 61 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 not including legals.
In 2010 we were called by Mr and Mrs. H Ali who, having bought a ground floor apartment in Newcastle upon Tyne in May 2001. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Similar homes in Newcastle upon Tyne with 100 year plus lease were in the region of £260,000. The average amount of ground rent was £50 collected every twelve months. The lease concluded on 12 November 2098. Given that there were 72 years left we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.