There is no doubt about it a leasehold property in North Shields and Tynemouth is a wasting asset as a result of the diminishing lease term. If the lease has, beyond one hundred years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner than later. Most flat owners in North Shields and Tynemouth will qualify for this right; that being said a lawyer can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for decades to come.
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| 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. |
The lawyers that we work with procure North Shields and Tynemouth 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 lawyer we work with provide it.
Off the back of unsuccessful negotiations with the landlord of her purpose-built apartment in North Shields and Tynemouth, Hollie commenced the lease extension process as the eighty year threshold was fast coming. The transaction completed in May 2008. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were called by Mr and Mrs. M Harris who, having was assigned a lease of a one bedroom apartment in North Shields and Tynemouth in June 2006. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Identical properties in North Shields and Tynemouth with 100 year plus lease were in the region of £210,000. The mid-range amount of ground rent was £50 collected quarterly. The lease finished in 2105. Having 80 years unexpired we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus legals.
Last Autumn we were called by Mr and Mrs. H Brown , who purchased a one bedroom apartment in North Shields and Tynemouth in August 1999. The question was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Similar premises in North Shields and Tynemouth with 100 year plus lease were valued about £275,000. The mid-range ground rent payable was £45 collected quarterly. The lease came to a finish on 28 November 2094. Having 69 years remaining we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.