The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Tynemouth may extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Tynemouth lease extension. Postponing that expense now simply increases the premium you will eventually be required to pay for a lease extension.
Leasehold premises in Tynemouth with over 100 years outstanding on the lease are often 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 buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Tynemouth,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Tynemouth valuers.
In the wake of eight months of protracted discussions with the landlord of her leasehold flat in Tynemouth, Chelsea initiated the lease extension process as the 80 year mark was swiftly coming. The lease extension completed in September 2014. The freeholder’s charges were kept to an absolute minimum.
Last April we were called by Mr and Mrs. H Carter , who purchased a newly refurbished flat in Tynemouth in June 2001. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical premises in Tynemouth with an extended lease were in the region of £270,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease ran out in 2100. Having 75 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Dr P Green bought a first floor flat in Tynemouth in September 1997. The question was if we could estimate the premium would likely be to extend the lease by an additional years. Similar properties in Tynemouth with a long lease were worth £168,800. The average amount of ground rent was £60 collected annually. The lease elapsed on 26 March 2080. Taking into account 55 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus fees.