On the balance of probabilities where you own a flat in Shotley Bridge you actually own a long leasehold interest over your property
Leasehold properties in Shotley Bridge with in excess of 100 years left 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 property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Shotley Bridge can be a difficult process. We recommend you secure guidance from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Shotley Bridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Kyle, started to get near to the eighty-year mark with the lease on his two bedroom apartment in Shotley Bridge. In buying his property 19 years previously, the length of the lease was of no concern. As luck would have it, he noticed he would imminently be paying an escalated premium for a lease extension. Kyle arranged for a lease extension just under the wire in March. Kyle and the landlord who owned the flat above subsequently settled on sum of £5,500 . If he not met the deadline, the sum would have gone up by at least £1,025.
Mr V Pérez completed a first floor apartment in Shotley Bridge in June 2004. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparative premises in Shotley Bridge with 100 year plus lease were worth £193,400. The mid-range ground rent payable was £65 billed per annum. The lease expiry date was on 3 October 2085. Given that there were 59 years outstanding we calculated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 not including expenses.
In 2012 we were contacted by Dr Lydia François who, having bought a basement apartment in Shotley Bridge in February 1996. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative flats in Shotley Bridge with a long lease were valued around £250,000. The mid-range amount of ground rent was £50 billed quarterly. The lease expired in 2096. Given that there were 70 years outstanding we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.