The only way is down when it comes to Shiremoor lease terms. Shiremoor flats that have a residual term fewer than eighty years will reduce in market price even faster, and the cost of extending your lease will go up.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Shiremoor,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Shiremoor valuers.
Subsequent to protracted negotiations with the freeholder of her studio flat in Shiremoor, Emma started the lease extension process as the 80 year threshold was rapidly coming. The transaction completed in April 2009. The freeholder’s fees were negotiated to less than 500 pounds.
In 2011 we were phoned by Dr A André who, having owned a purpose-built apartment in Shiremoor in March 1999. The dilemma was if we could approximate the premium could be to extend the lease by a further 90 years. Similar premises in Shiremoor with a long lease were worth £216,000. The average ground rent payable was £60 collected annually. The lease ran out in 2083. Given that there were 58 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including expenses.
Last March we were e-mailed by Dr Dylan Evans , who purchased a one bedroom apartment in Shiremoor in May 2011. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparable flats in Shiremoor with a long lease were worth £205,000. The mid-range amount of ground rent was £50 billed annually. The lease expiry date was on 19 March 2103. Having 78 years left we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.