The value of North Shields and Tynemouth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the unexpired lease term is below than eighty years
Leasehold properties in North Shields and Tynemouth with more than one hundred 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 property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in North Shields and Tynemouth can be a difficult process. We recommend you procure 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 in-depth market knowledge dealing with 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.
Subsequent to unsuccessful correspondence with the landlord of her one bedroom flat in North Shields and Tynemouth, Mollie initiated the lease extension process just as her lease was nearing the crucial eighty-year threshold. The legal work was concluded in January 2015. The freeholder’s costs were kept to an absolute minimum.
In 2013 we were approached by Mr and Mrs. V Petit who, having took over the lease of a one bedroom flat in North Shields and Tynemouth in October 1995. The question was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparable residencies in North Shields and Tynemouth with an extended lease were in the region of £200,000. The average amount of ground rent was £50 invoiced annually. The lease expired on 1 May 2104. Having 78 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.
Last Christmas we were contacted by Dr Jamie Thomas , who purchased a first floor apartment in North Shields and Tynemouth in January 2007. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative premises in North Shields and Tynemouth with 100 year plus lease were valued about £267,600. The mid-range amount of ground rent was £65 invoiced quarterly. The lease elapsed on 17 February 2093. Taking into account 67 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £14,300 and £16,400 exclusive of expenses.