North Shields and Tynemouth leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most North Shields and Tynemouth tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in North Shields and Tynemouth you should see if your lease has between seventy and 90 years left. There are compelling reasons why a North Shields and Tynemouth leaseholder with a lease having around 80 years left should take steps to make sure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in North Shields and Tynemouth,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with North Shields and Tynemouth valuers.
Following protracted discussions with the freeholder of her studio apartment in North Shields and Tynemouth, Victoria started the lease extension process as the eighty year deadline was quickly coming. The lease extension completed in September 2011. The landlord’s charges were kept to an absolute minimum.
In 2010 we were contacted by Mr and Mrs. A Bonnet who, having completed a first floor flat in North Shields and Tynemouth in January 1996. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative properties in North Shields and Tynemouth with an extended lease were valued about £250,400. The mid-range ground rent payable was £65 invoiced annually. The lease lapsed on 3 October 2090. Considering the 64 years unexpired we approximated the premium to the landlord to extend the lease to be within £19,000 and £22,000 not including expenses.
In 2014 we were e-mailed by Mrs Eleanor Roux who, having moved into a newly refurbished apartment in North Shields and Tynemouth in April 1999. The dilemma was if we could estimate the price would be to prolong the lease by an additional years. Identical properties in North Shields and Tynemouth with 100 year plus lease were worth £189,000. The average ground rent payable was £55 invoiced yearly. The lease expiry date was in 2079. Having 53 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 not including fees.