It’s an underpublicised certainty that a Shiremoor residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Shiremoor property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term drops below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Shiremoor will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold premises in Shiremoor with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Santander | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with handle Shiremoor 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 conveyancing solicitor we work with provide it.
In recent months Lewis, came seriously close to the eighty-year threshold with the lease on his leasehold apartment in Shiremoor. Having purchased his flat twenty years previously, the lease term was of minimal interest. Thankfully, he realised he needed to take steps soon on Extending the lease. Lewis was able to extend his lease just in the nick of time in January. Lewis and the landlord who owned the flat above subsequently agreed on a premium of £5,000 . If the lease had gone lower than 80 years, the premium would have become more costly by at least £1,000.
Last April we were phoned by Dr S Watson , who acquired a one bedroom flat in Shiremoor in January 2011. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Shiremoor with a long lease were in the region of £275,000. The mid-range ground rent payable was £65 collected yearly. The lease ended on 25 January 2094. Given that there were 68 years unexpired we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.
In 2012 we were called by Dr Jamie Moreau who, having completed a garden apartment in Shiremoor in July 1999. The question was if we could approximate the price would be for a ninety year extension to my lease. Comparative residencies in Shiremoor with an extended lease were in the region of £208,600. The mid-range ground rent payable was £60 collected yearly. The lease ran out on 15 September 2083. Considering the 57 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including legals.