Chances are that if you own a flat in South Shields you actually own a long leasehold interest over your property
It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in South Shields can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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.
Michael owned a conversion apartment in South Shields being marketed with a lease of just over sixty years remaining. Michael on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Michael to exercise his statutory right. Michael obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.
Last Christmas we were e-mailed by Mr N Walker , who moved into a one bedroom flat in South Shields in January 2011. The question was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparative residencies in South Shields with a long lease were in the region of £235,200. The mid-range ground rent payable was £45 invoiced monthly. The lease ran out in 2092. Given that there were 66 years remaining we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including costs.
In 2012 we were approached by Mr Seth Morris who, having purchased a basement apartment in South Shields in October 1998. The question was if we could estimate the price would likely be for a ninety year lease extension. Comparable residencies in South Shields with an extended lease were worth £275,000. The average amount of ground rent was £55 collected monthly. The lease finished in 2103. Having 77 years remaining we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including professional charges.