As the the remaining lease term of a North Shields residential lease lessens so does its value and therefore the value of your property. Where the residual term has, over 99 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in North Shields will meet the qualifying criteria; however a conveyancer should be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in North Shields with in excess of 100 years unexpired 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 property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in North Shields,the lease extension lawyers 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 valuers.
Adam was the the leasehold owner of a high value apartment in North Shields on the market with a lease of a little over 59 years unexpired. Adam on an informal basis spoke with his freeholder a well known London-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 at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Adam to exercise his statutory right. Adam procured expert advice and secured satisfactory resolution informally and sell the flat.
Mr and Mrs. R Bernard bought a basement flat in North Shields in May 2001. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparative properties in North Shields with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £55 billed yearly. The lease ended in 2103. Having 77 years remaining we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus fees.
Dr Paige Flores was assigned a lease of a newly refurbished apartment in North Shields in July 2005. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative homes in North Shields with a long lease were worth £183,600. The average ground rent payable was £65 billed quarterly. The lease came to a finish in 2083. Given that there were 57 years unexpired we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of legals.