With a residential leasehold property in Newcastle upon Tyne, you are actually buying an entitlement to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially once there are less than 80 years remaining. Residents in Newcastle upon Tyne with a lease nearing 81 years left should seriously think of extending it without delay. Once the lease term has under 80 years remaining, under the current legislation the landlord can calculate and demand a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Newcastle upon Tyne with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancers that we work with handle 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 conveyancing solicitor we work with provide it.
Following protracted discussions with the landlord of her basement flat in Newcastle upon Tyne, Abigail started the lease extension process as the eighty year threshold was swiftly nearing. The transaction completed in November 2014. The freeholder’s costs were negotiated to slightly above 550 pounds.
Mrs O Lefèvre completed a garden apartment in Newcastle upon Tyne in September 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Identical premises in Newcastle upon Tyne with a long lease were in the region of £235,200. The mid-range ground rent payable was £45 billed every twelve months. The lease ended on 7 November 2092. Having 66 years left we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.
Last Summer we were approach by Mr Oscar Watson , who acquired a one bedroom apartment in Newcastle upon Tyne in April 1995. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Identical residencies in Newcastle upon Tyne with an extended lease were valued about £275,000. The average amount of ground rent was £55 billed every twelve months. The lease elapsed in 2103. Considering the 77 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.