North Shields and Tynemouth residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
Leasehold properties in North Shields and Tynemouth with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 freeholder in North Shields and Tynemouth,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with North Shields and Tynemouth valuers.
Aiden was the the leasehold proprietor of a 2 bedroom apartment in North Shields and Tynemouth on the market with a lease of just over 61 years remaining. Aiden informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Aiden to exercise his statutory right. Aiden procured expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Last Spring we were contacted by Ms Katherine Ramírez , who took over the lease of a purpose-built apartment in North Shields and Tynemouth in March 2001. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Comparative flats in North Shields and Tynemouth with 100 year plus lease were valued about £181,600. The average ground rent payable was £55 collected monthly. The lease lapsed in 2077. Considering the 52 years left we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including fees.
Dr Finley Roberts took over the lease of a one bedroom apartment in North Shields and Tynemouth in May 1998. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Similar properties in North Shields and Tynemouth with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £45 collected annually. The lease came to a finish in 2097. Taking into account 72 years left we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus costs.