The nearer a residential lease in North Shields and Tynemouth gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, beyond 125 years to run then this decrease may be negligible that being said there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Many flat owners in North Shields and Tynemouth will qualify for this right; nevertheless a lawyer will be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in North Shields and Tynemouth with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in North Shields and Tynemouth can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in lease extensions.
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 North Shields and Tynemouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Seth, started to get near to the eighty-year mark with the lease on his leasehold flat in North Shields and Tynemouth. Having purchased his flat two decades ago, the lease term was of minimal significance. Thankfully, he realised he would imminently be paying way over the odds for Extending the lease. Seth extended the lease at the eleventh hour last August. Seth and the freeholder via the managing agents eventually agreed on an amount of £6,000 . If the lease had slipped to less than 80 years, the figure would have increased by at least £925.
In 2013 we were called by Mr Kian Young who, having purchased a first floor apartment in North Shields and Tynemouth in July 2003. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparative flats in North Shields and Tynemouth with a long lease were worth £223,400. The average amount of ground rent was £60 billed monthly. The lease expired on 23 November 2085. Having 59 years unexpired we calculated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 plus professional charges.
Last Christmas we were contacted by Dr Elijah Williams , who completed a one bedroom apartment in North Shields and Tynemouth in November 2005. The question was if we could estimate the premium could be for a 90 year extension to my lease. Similar premises in North Shields and Tynemouth with an extended lease were valued about £205,000. The average amount of ground rent was £50 collected per annum. The lease end date was on 12 March 2105. Given that there were 79 years unexpired we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.