With a long leasehold premises in South Shields, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially once there are less than 80 years remaining. Leasehold owners in South Shields with a lease drawing near to 81 years left should seriously consider extending it sooner rather than later. When the lease term has below 80 years left, under the current Act the freeholder can calculate and charge a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Halifax | |
| Nationwide Building Society |
Irrespective of whether you are a tenant or a landlord in South Shields,the lease extension experts 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 Shields valuers.
Off the back of lengthy negotiations with the landlord of her first floor flat in South Shields, Ella commenced the lease extension process as the 80 year deadline was quickly nearing. The lease extension was concluded in August 2014. The landlord’s charges were kept to an absolute minimum.
Last Autumn we were approach by Mr John Bennett , who purchased a purpose-built apartment in South Shields in May 2006. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Identical homes in South Shields with an extended lease were valued around £280,000. The mid-range amount of ground rent was £55 billed quarterly. The lease end date was in 2104. Considering the 78 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.
Last year we were called by Mrs Y Bernard , who purchased a studio apartment in South Shields in June 1996. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable properties in South Shields with 100 year plus lease were valued around £186,000. The mid-range amount of ground rent was £65 invoiced per annum. The lease expiry date was in 2084. Taking into account 58 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £24,700 and £28,600 exclusive of costs.