With a domestic leasehold property in Ponteland, you are actually buying a right to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Leasehold owners in Ponteland with a lease approaching 81 years left should seriously consider extending it sooner rather than later. Once the lease term has less than eighty years outstanding, under the current statute the landlord is entitled to calculate and levy a greater premium, assessed on a technical computation, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
Using our service gives you increased control over the value of your Ponteland leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy discussions with the freeholder of her one bedroom apartment in Ponteland, Charlotte initiated the lease extension process as the eighty year deadline was swiftly coming. The lease extension was concluded in May 2012. The landlord’s fees were negotiated to below 700 pounds.
In 2012 we were phoned by Mr Alfie García who, having bought a purpose-built flat in Ponteland in June 2009. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative residencies in Ponteland with a long lease were valued about £295,000. The mid-range ground rent payable was £45 collected monthly. The lease elapsed on 13 February 2100. Given that there were 74 years remaining we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.
Last year we were approach by Ms Caitlin Baker , who bought a studio apartment in Ponteland in October 1998. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable premises in Ponteland with an extended lease were valued around £248,000. The average amount of ground rent was £65 invoiced quarterly. The lease ran out on 28 March 2089. Considering the 63 years outstanding we approximated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 not including expenses.