The only way is down when it comes to Newcastle upon Tyne lease terms. Newcastle upon Tyne leaseholds that have a remaining term fewer than 80 years will de-escalate in value at a rapid rate, and the cost to extend your lease will increase.
Leasehold premises in Newcastle upon Tyne with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Newcastle upon Tyne can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience 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.
Off the back of protracted correspondence with the landlord of her studio apartment in Newcastle upon Tyne, Alisha commenced the lease extension process as the eighty year mark was fast coming. The legal work was concluded in April 2011. The landlord’s costs were restricted to less than 600 pounds.
In 2013 we were approached by Mr and Mrs. A Morel who, having moved into a first floor apartment in Newcastle upon Tyne in September 1995. The question was if we could estimate the premium would likely be for a 90 year lease extension. Comparative premises in Newcastle upon Tyne with an extended lease were in the region of £193,400. The average ground rent payable was £65 collected annually. The lease concluded in 2084. Having 59 years remaining we estimated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of costs.
In 2010 we were called by Ms R Johnson who, having was assigned a lease of a purpose-built apartment in Newcastle upon Tyne in January 2009. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparative residencies in Newcastle upon Tyne with an extended lease were worth £255,000. The mid-range amount of ground rent was £50 billed quarterly. The lease terminated in 2095. Taking into account 70 years remaining we estimated the compensation to the freeholder to extend the lease to be within £10,500 and £12,000 not including expenses.