It’s a harsh certainty that a Tynemouth residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Tynemouth property market.Once your lease nears 85ish years, you need to start considering 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 slips lower than 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Tynemouth will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barclays plc | |
| Barnsley Building Society | |
| National Westminster Bank |
Lease extensions in Tynemouth can be a difficult process. We recommend you get professional help from a lawyer and surveyor 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 dealing with Tynemouth 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 Jason, came seriously near to the 80-year mark with the lease on his purpose- built flat in Tynemouth. In buying his flat two decades ago, the lease term was of little significance. As luck would have it, he realised he would imminently be paying an inflated amount for a lease extension. Jason was able to extend his lease just under the wire last September. Jason and the freeholder in the end settled on an amount of £6,000 . If the lease had dipped lower than eighty years, the premium would have escalated by a minimum £1,125.
Last Autumn we were e-mailed by Ms L Murphy , who purchased a first floor flat in Tynemouth in November 2008. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar residencies in Tynemouth with a long lease were in the region of £264,000. The mid-range amount of ground rent was £60 collected annually. The lease lapsed in 2079. Having 53 years outstanding we estimated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 not including legals.
In 2014 we were e-mailed by Mr and Mrs. F Petit who, having purchased a basement flat in Tynemouth in January 2011. The question was if we could approximate the premium could be for a ninety year extension to my lease. Identical homes in Tynemouth with a long lease were worth £220,400. The average amount of ground rent was £45 collected per annum. The lease lapsed in 2090. Taking into account 64 years unexpired we estimated the premium to the landlord to extend the lease to be within £15,200 and £17,600 not including expenses.