Unfortunately that a Redcar residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Redcar property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Redcar will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold properties in Redcar with over one hundred years unexpired on the lease are sometimes regarded as a ‘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 upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Redcar,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Redcar valuers.
Two years ago Omar, started to get near to the eighty-year mark with the lease on his one bedroom apartment in Redcar. In buying his property 18 years previously, the lease term was of minimal importance. Thankfully, he realised he would imminently be paying an escalated premium for Extending the lease. Omar arranged for a lease extension at the eleventh hour in July. Omar and the freeholder via the management company in the end settled on sum of £5,000 . If he failed to meet the deadline, the figure would have gone up by a minimum £850.
In 2013 we were called by Mr Gabriel Rogers who, having moved into a recently refurbished flat in Redcar in August 2004. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Similar residencies in Redcar with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 collected annually. The lease elapsed in 2079. Given that there were 54 years as a residual term we approximated the premium to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of professional charges.
Mr and Mrs. V Lefèvre owned a first floor flat in Redcar in April 2009. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparative flats in Redcar with a long lease were valued around £227,800. The average amount of ground rent was £45 billed every twelve months. The lease lapsed in 2090. Having 65 years as a residual term we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of costs.