Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Wallsend. Clearly, the length of lease left shortens as time goes by. This is often ignored and only becomes a problem when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible leaseholders in Wallsend have the right to extend the lease for a further ninety years in accordance with statute. Please give due deliberation before delaying your Wallsend lease extension. Holding off that expense now likely increases the price you will eventually incur for a lease extension
Leasehold properties in Wallsend with more than 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Leeds Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in Wallsend,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Wallsend valuers.
Sebastian was the the leasehold owner of a studio flat in Wallsend being sold with a lease of just over sixty years unexpired. Sebastian informally approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Sebastian to exercise his statutory right. Sebastian procured expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Last month we were phoned by Mr and Mrs. W Michel , who acquired a ground floor apartment in Wallsend in September 2002. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar flats in Wallsend with 100 year plus lease were valued about £243,000. The average ground rent payable was £65 billed quarterly. The lease expired on 6 July 2089. Given that there were 63 years unexpired we estimated the premium to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of expenses.
Last year we were phoned by Mrs Ella Thomas , who moved into a one bedroom apartment in Wallsend in February 1995. We are asked if we could estimate the premium could be for a 90 year lease extension. Identical premises in Wallsend with a long lease were valued around £181,600. The mid-range amount of ground rent was £55 collected annually. The lease termination date was in 2078. Taking into account 52 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including professional charges.