South Hylton leases on domestic properties are gradually losing value. if your lease has about 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in South Hylton will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain cases you may not qualify. There are also strict deadlines and formalities to follow once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a freeholder in South Hylton,the lease extension solicitors 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 South Hylton valuers.
Two years ago Theo, came critically near to the eighty-year mark with the lease on his two bedroom flat in South Hylton. Having purchased his home two decades ago, the length of the lease was of little bearing. Fortunately, he realised he needed to take action soon on Extending the lease. Theo extended the lease just ahead of time in June. Theo and the freeholder via the managing agents eventually agreed on sum of £5,000 . If he not met the deadline, the amount would have escalated by a minimum £1,125.
Last Autumn we were phoned by Ms V Williams , who moved into a ground floor flat in South Hylton in August 2001. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparable residencies in South Hylton with an extended lease were worth £186,000. The mid-range ground rent payable was £65 billed yearly. The lease ran out on 16 January 2083. Taking into account 58 years unexpired we approximated the premium to the landlord for the lease extension to be between £24,700 and £28,600 not including expenses.
In 2014 we were called by Ms H Nelson who, having moved into a newly refurbished flat in South Hylton in October 2006. The question was if we could approximate the premium would be to extend the lease by 90 years. Comparative residencies in South Hylton with a long lease were in the region of £250,000. The average amount of ground rent was £50 billed per annum. The lease expiry date was on 21 March 2094. Having 69 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.