Shiremoor leases on residential properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Shiremoor will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some situations you may not be entitled. There are also strict timetables and formalities to follow once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold premises in Shiremoor with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| National Westminster Bank | |
| Skipton Building Society | |
| Virgin | |
| Yorkshire Building Society |
Using our service will provide you better control over the value of your Shiremoor leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Milo, came dangerously close to the 80-year threshold with the lease on his studio apartment in Shiremoor. In buying his property 18 years previously, the unexpired term was of minimal concern. Fortunately, he became aware that he needed to take action soon on Extending the lease. Milo extended the lease just in the nick of time in April. Milo and the landlord eventually settled on an amount of £5,000 . If the lease had fallen lower than 80 years, the premium would have become more costly by at least £1,075.
In 2014 we were phoned by Dr K Alexander who, having owned a one bedroom flat in Shiremoor in January 2010. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable residencies in Shiremoor with a long lease were in the region of £210,000. The average amount of ground rent was £50 collected annually. The lease lapsed on 28 May 2106. Taking into account 80 years unexpired we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.
Last Spring we were approach by Mr and Mrs. B Murphy , who was assigned a lease of a basement flat in Shiremoor in June 1997. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar flats in Shiremoor with an extended lease were valued about £280,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease concluded in 2095. Having 69 years unexpired we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.