Unfortunately that a South Hylton residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the South Hylton property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be payable. Most flat owners in South Hylton will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in South Hylton with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a landlord 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 experience and the close ties they enjoy with South Hylton valuers.
Owen was the the leasehold proprietor of a studio flat in South Hylton on the market with a lease of a little over 61 years remaining. Owen informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Owen to exercise his statutory right. Owen obtained expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Last Autumn we were e-mailed by Mr U Petit , who purchased a one bedroom apartment in South Hylton in September 1996. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Similar residencies in South Hylton with a long lease were in the region of £260,000. The average ground rent payable was £50 billed per annum. The lease came to a finish on 27 March 2098. Given that there were 72 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.
Mrs Poppy James took over the lease of a one bedroom flat in South Hylton in August 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Comparable premises in South Hylton with 100 year plus lease were worth £256,600. The mid-range amount of ground rent was £60 billed every twelve months. The lease expiry date was on 12 October 2078. Considering the 52 years outstanding we calculated the compensation to the landlord to extend the lease to be within £41,800 and £48,400 not including legals.