South Shields leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying South Shields residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in South Shields you really ought to investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in South Shields with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Lease extensions in South Shields can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring South Shields lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Matthew, started to get near to the eighty-year mark with the lease on his ground floor apartment in South Shields. Having bought his flat two decades ago, the unexpired term was of no relevance. Fortunately, he recognised he needed to take action soon on a lease extension. Matthew arranged for a lease extension at the eleventh hour in August. Matthew and the landlord who owned the flat above ultimately agreed on the final figure of £5,000 . If he failed to meet the deadline, the figure would have gone up by a minimum £1,100.
Mr and Mrs. C Khan was assigned a lease of a first floor apartment in South Shields in November 1998. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Similar residencies in South Shields with an extended lease were in the region of £193,400. The mid-range ground rent payable was £65 collected yearly. The lease ran out on 14 November 2085. Having 59 years unexpired we calculated the premium to the landlord for the lease extension to be between £21,900 and £25,200 plus professional charges.
Mr P Baker owned a ground floor flat in South Shields in November 2012. The question was if we could approximate the price would be for a ninety year extension to my lease. Comparable premises in South Shields with an extended lease were worth £255,000. The average ground rent payable was £50 invoiced per annum. The lease elapsed on 24 January 2096. Taking into account 70 years remaining we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.