North Shields leases on residential deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in North Shields will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some situations you may not be entitled. There are prescribed timetables and formalities to follow once the process is triggered so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake North Shields 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.
Jake was the the leasehold owner of a conversion flat in North Shields being sold with a lease of a few days over 61 years unexpired. Jake informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Jake to exercise his statutory right. Jake obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Ms K Phillips owned a purpose-built flat in North Shields in November 2008. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar homes in North Shields with an extended lease were valued around £270,000. The mid-range amount of ground rent was £55 billed per annum. The lease terminated on 18 January 2101. Having 75 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.
Last Spring we were e-mailed by Dr M Flores , who was assigned a lease of a ground floor apartment in North Shields in March 1995. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in North Shields with 100 year plus lease were valued around £173,800. The mid-range ground rent payable was £60 invoiced every twelve months. The lease lapsed in 2081. Given that there were 55 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of legals.