As the the remaining lease term of a Tynemouth domestic lease diminished so does its value and therefore the value of your property. Where the lease has, beyond one hundred years remaining then this decrease may be of little impact that being said there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Tynemouth will qualify for this right; that being said a lawyer will be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Tynemouth with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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. |
The lawyers that we work with procure Tynemouth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Lewis owned a conversion flat in Tynemouth being marketed with a lease of just over fifty eight years left. Lewis informally contacted his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Lewis to exercise his statutory right. Lewis procured expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
In 2011 we were e-mailed by Mr and Mrs. C Phillips who, having took over the lease of a one bedroom flat in Tynemouth in May 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Comparative flats in Tynemouth with an extended lease were in the region of £218,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease elapsed on 28 March 2088. Having 63 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 not including professional charges.
Mr and Mrs. O Evans bought a ground floor apartment in Tynemouth in August 1999. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Comparative flats in Tynemouth with a long lease were valued about £265,000. The average ground rent payable was £50 collected per annum. The lease expired in 2099. Given that there were 74 years left we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.