Wallsend leases on domestic deteriorating in value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the current lease drops below eighty years - otherwise a higher premium will be payable. Flat owners in Wallsend will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In some cases you may not qualify. There are prescribed deadlines and formalities to follow once the process has commenced so it’s sensible to be guided by a conveyancer during the process.
Leasehold residencies in Wallsend with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
The conveyancers that we work with handle Wallsend 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 lawyer we work with provide it.
During the course of the last few months Alfie, came precariously near to the 80-year mark with the lease on his leasehold apartment in Wallsend. Having bought his home two decades ago, the lease term was of little importance. Thankfully, he became aware that he needed to take action soon on a lease extension. Alfie extended the lease just in the nick of time last June. Alfie and the landlord who owned the flat above in the end agreed on an amount of £5,500 . If the lease had gone to less than 80 years, the price would have gone up by a minimum £1,150.
In 2013 we were approached by Mr and Mrs. R Hernández who, having owned a purpose-built flat in Wallsend in November 2010. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Comparable homes in Wallsend with a long lease were worth £201,200. The mid-range ground rent payable was £55 collected yearly. The lease elapsed in 2081. Given that there were 56 years left we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including legals.
In 2012 we were approached by Dr Andrew Parker who, having moved into a one bedroom apartment in Wallsend in March 2006. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparative homes in Wallsend with 100 year plus lease were worth £300,000. The mid-range ground rent payable was £50 billed yearly. The lease expired on 8 July 2101. Considering the 76 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of fees.