For anyone whose Newcastle upon Tyne home is held on a long lease, the message is clear – if you do nothing, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
Leasehold residencies in Newcastle upon Tyne with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service will provide you better control over the value of your Newcastle upon Tyne leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Andrew owned a studio apartment in Newcastle upon Tyne being sold with a lease of fraction over 61 years outstanding. Andrew on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be due on a lease extension were Andrew to invoke his statutory right. Andrew obtained expert advice and secured an acceptable deal without resorting to tribunal and sell the flat.
Mr and Mrs. O Leroy moved into a newly refurbished apartment in Newcastle upon Tyne in February 2007. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Similar premises in Newcastle upon Tyne with a long lease were in the region of £265,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease ended on 13 May 2099. Having 73 years outstanding we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
Last November we were e-mailed by Mr and Mrs. A Morel , who took over the lease of a garden apartment in Newcastle upon Tyne in September 1999. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Identical residencies in Newcastle upon Tyne with a long lease were in the region of £264,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease elapsed in 2079. Considering the 53 years remaining we calculated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 plus fees.