The only way is down when it comes to South Shields lease terms. South Shields flats that have a lease term less than than 80 years will de-escalate in market price at a rapid rate, and the cost of extending your lease will rise.
Leasehold residencies in South Shields with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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 freeholder in South Shields,the lease extension experts that we work with will always be prepared 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 Shields valuers.
Subsequent to unsuccessful discussions with the landlord of her basement flat in South Shields, Kate started the lease extension process just as her lease was coming close to the crucial 80-year deadline. The transaction was finalised in August 2011. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were e-mailed by Mr B Martin who, having moved into a first floor apartment in South Shields in November 1999. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparable premises in South Shields with an extended lease were in the region of £255,000. The mid-range ground rent payable was £50 collected monthly. The lease expiry date was on 20 February 2097. Considering the 71 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.
Last month we were contacted by Dr Isabella Carter , who bought a recently refurbished apartment in South Shields in June 2010. The question was if we could estimate the price could be to extend the lease by ninety years. Identical residencies in South Shields with 100 year plus lease were valued around £254,200. The average ground rent payable was £60 collected monthly. The lease end date was in 2077. Having 51 years remaining we estimated the premium to the landlord for the lease extension to be between £43,700 and £50,600 not including expenses.