Wallsend leases on residential properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Wallsend will usually qualify for a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and steps to comply with once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
Leasehold properties in Wallsend with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Engaging our service will provide you increased control over the value of your Wallsend leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful negotiations with the landlord of her purpose-built flat in Wallsend, Naomi initiated the lease extension process as the eighty year threshold was fast approaching. The legal work was finalised in August 2012. The freeholder’s costs were kept to an absolute minimum.
Last Summer we were approach by Mrs Jordan Davies , who acquired a one bedroom flat in Wallsend in August 2012. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical premises in Wallsend with an extended lease were valued around £216,000. The mid-range ground rent payable was £60 billed quarterly. The lease expired on 24 September 2084. Considering the 58 years remaining we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus costs.
In 2011 we were contacted by Mr M Rose who, having took over the lease of a purpose-built flat in Wallsend in November 2002. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Wallsend with an extended lease were worth £200,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease concluded on 2 February 2104. Given that there were 78 years remaining we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.