On the balance of probabilities if you own a flat in Shiremoor you actually own a long leasehold interest over your property
Leasehold properties in Shiremoor with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Shiremoor,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Shiremoor valuers.
Last year Nathan, came precariously close to the eighty-year mark with the lease on his first floor flat in Shiremoor. In buying his property 19 years previously, the unexpired term was of minimal importance. Thankfully, he realised he would soon be paying an escalated premium for Extending the lease. Nathan arranged for a lease extension just ahead of time in May. Nathan and the freeholder via the management company eventually settled on the final figure of £5,500 . If he had missed the deadline, the figure would have become more costly by at least £1,050.
In 2010 we were contacted by Mr and Mrs. E Michel who, having took over the lease of a garden flat in Shiremoor in November 2010. 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 Shiremoor with an extended lease were valued about £280,000. The average ground rent payable was £45 collected every twelve months. The lease elapsed in 2095. Having 70 years left we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
Last Spring we were called by Dr Chelsea Allen , who acquired a ground floor apartment in Shiremoor in April 2009. We are asked if we could approximate the price could be to extend the lease by an additional years. Identical residencies in Shiremoor with a long lease were worth £223,400. The mid-range ground rent payable was £60 invoiced monthly. The lease ran out in 2084. Taking into account 59 years remaining we calculated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 not including professional charges.